Response to the following problem:
Blackhawk Data Processing began the year with capital of $90,000. On July 12, Kent Black (the owner) invested $12,000 cash in the business. On September 26, he transferred to the company land valued at $70,000. The income statement for the year ended December 31, 20X5, reported a net loss of $28,000. During this fiscal year, Black withdrew $1,500 each month for personal use.
Required
1. Prepare Blackhawk's statement of owner's equity for the year ended December 31, 20X5.
2. Did the owner's equity of the business increase or decrease during the year? What caused this change?