Juan Real Estate Company (organized as a corporation on April 1, 2013) has completed the accounting cycle for the second year, ended March 31, 2015. Juan has also completed a correct trial balance as follows:

Required:
1. Prepare a statement of earnings for the reporting year ended March 31, 2015. Include income tax expense, assuming a 30 percent tax rate. Use the following major captions: revenues, expenses, earnings before income taxes, income tax, net earnings, and earnings per share (list each item under these captions as appropriate).
2. Prepare the journal entry to record income taxes for the year (not yet paid).
3. Prepare a statement of financial position at the end of the reporting year, March 31, 201
5. Use the following captions (list each item under these captions as appropriate):
Assets
Current assets
Non- current assets
Liabilities
Current liabilities
Non- current liabilities
Shareholders€™ Equity
Contributed capital
Retained earnings
4. Compute the net profit margin ratio and the return on equity. What do these ratios suggest?
5. Prepare the closing entries at March 31, 2015.

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JUAN REAL ESTATE COMPANY Adjusted Trial Balance At March 31, 2015 Account Titles Cash Trade receivables Office supplies inventory Automobiles (company cars) Accumulated depreciation, automobiles Office equipment Accumulated depreciation, office equipment Trade payables Salaries and commissions payable Note payable, long term Contributed capital (30,000 shares) Retained earnings (on April 1, 2014) Dividends declared Sales commissions eaned Credit 53,000 44,800 300 30,000 10,000 3,000 1,000 20,250 1,500 30,000 35,000 7,350 8,000 77,000 13,000 Operating expenses (detail omitted to conserve your time) Depreciation expense (including $500 on office equipment) Interest expense 48,000 5,500 2.500 $195,100 Totals $195,100