Financial information related to Lost Trail Company, a corporation, for the month ended June 30, 2012, is

Question:

Financial information related to Lost Trail Company, a corporation, for the month ended June 30, 2012, is as follows.
Net income for June $125,000
Dividends 18,000
Retained earnings, June 1, 2012 375,000
a. Prepare a retained earnings statement for the month ended June 30, 2012.
b. Why is the retained earnings statement prepared before the June 30, 2012 balance sheet?