Juan Real Estate Company (organized as a corporation on April 1, 2013) has completed the accounting cycle for the year, ended March 31, 2018. Juan has also completed a correct trial balance as follows: Credit $ 19,500 JUAN REAL ESTATE COMPANY Adjusted Trial Balance At March 31, 2018 Account Titles Debit Cash $72,000 Accounts receivable 54,300 Office supplies inventory 1,250 Automobiles (company cars) 49,000 Accumulated depreciation, automobiles Office equipment 4,900 Accumulated depreciation, office equipment Accounts payable Salaries and commissions payable Note payable, long term Contributed capital (30,000 shares) Retained earnings (on April 1, 2017) Dividends declared 9,900 Sales commissions earned Management fees earned Operating expenses (detail omitted to conserve your time) 67,000 Depreciation expense (including $1,450 on office 9,300 equipment) Interest expense 3,450 1,950 25,000 2,450 49,000 54,000 10,200 86,500 22,500 Totals $271,100 $271,100 Assuming a 30 percent tax rate. Required: 1. Prepare a statement of earnings for the reporting year ended March 31, 2018. (Round "Earnings per share" to 2 decimal places.) $ 109,000 JUAN REAL ESTATE COMPANY Statement of Earnings For the Year Ended March 31, 2018 Revenues: Sales commissions $ 86,500 Management fees 22,500 0 Total revenues Expenses Depreciation 9,300 0 Interest 3,450 Operating (various) 67,000 Total expenses Earnings before income taxes Income tax expense Net earnings Earnings per share 79,750 29,250 $ 29,250 2. Prepare the journal entry to record income taxes for the year (not yet paid). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record income tax expenses Note: Enter debits before credits. General Journal Debit Credit Transaction 1 explanation Record entry Clear entry View general journal 4. Compute the net profit margin ratio and the return on equity. (Round the final answers to the nearest whole number) %6 Net profit margin Return on equity 5. Prepare the closing entries at March 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet