Project 2

1. Project 2

1.11. Training Room 3

Project 2: Financial Statements

Training Room 3: Statement of Owner's Equity

Suggested Time: 80 minutes

Training Room Introduction

This is an image of a man using a calculator.

This image shows a cartoon picture of a young woman.

The statement of owner’s equity shows the change in owner's equity during a given time period. Recall that owner’s equity is the worth of the business after subtracting liabilities from assets. This statement lists the owner’s equity balance at the beginning of the period, additions and subtractions to the balance, and the ending balance. Additions come from owner investments and net income; subtractions come from owner withdrawals and net losses.