On June 1, 2015, One Planet Cosmetics Corp. was formed. Its assets, liabilities, share capital, revenues, expenses, and dividends as at June 30 follow:

Cash....................................$ 15,000

Accounts receivable .....................9,000

Supplies...................................$1,200

Equipment................................52,000

Accounts payable.......................# 7,300

Bank loan payable.......................23,000

Common shares..........................36,000

Dividends declared.......................1,000

Service revenue..........................24,200

Supplies expense..........................2,100

Interest expense...........................$ 800

Office expense............................1,500

Utilities expense...........................1,500

Income tax expense.........................700

Salaries expense...........................5,700

Instructions

(a) Prepare an income statement, statement of changes in equity, and statement of financial position for the month.

(b) Explain why it is necessary to prepare the financial statements in the order listed in part (a).