How do You Create a Sample Statement of Owner's Equity?
Take a look at the image to the left, of a sample statement of owner's equity (the owner's equity statement template is available in our media gallery). You will see at the top of the document, the company's/business's name will be listed, followed by the name of the document, Statement of Owner's Equity. Next, list the period that will be covered, whether it is a month, quarter, half-year, or year. You will notice that the template in the media gallery also has a footer space for the date created and the name of the person creating the statement - if you wish, list these items as well.
The actual statement lists the beginning balance for the period covered - in this case, it's $50,000 - a healthy amount of owner equity. Under the opening balance for the period, you will see that there is a place to note any income from investments. You will see that there is a listing both for the net income and net losses - your statement will have either one or the other filled in - remember, this amount is the amount derived from your income statement. Any withdrawals need to be documented as well. Finally, add the net income and investment income amounts to your owner equity capital balance and place this figure under "Subtotal" and subtract any losses and withdrawals and record the final amount under the new owner's equity balance.
By following these steps, it is easier than you think to create a statement of owner's equity.
Image Credit: Courtesy of screenshot provided by Ronda Levine of her media gallery template in Word format.