Question
Juan Real Estate Company (organized as a corporation on April 1, 2013) has completed the accounting cycle for the year ended March 31, 2024. Juan
Juan Real Estate Company (organized as a corporation on April 1, 2013) has completed the accounting cycle for the year ended March 31, 2024. Juan has also completed a correct trial balance as follows:
JUAN REAL ESTATE COMPANY | |||||||
Adjusted Trial Balance | |||||||
At March 31, 2024 | |||||||
Account Titles | Debit | Credit | |||||
Cash | $ | 58,000 | |||||
Accounts receivable | 47,300 | ||||||
Office supplies inventory | 550 | ||||||
Automobiles (company cars) | 35,000 | ||||||
Accumulated depreciation, automobiles | $ | 12,500 | |||||
Office equipment | 3,500 | ||||||
Accumulated depreciation, office equipment | 1,250 | ||||||
Accounts payable | 21,500 | ||||||
Salaries and commissions payable | 1,750 | ||||||
Note payable, long term | 35,000 | ||||||
Contributed capital (30,000 shares) | 40,000 | ||||||
Retained earnings (on April 1, 2023) | 8,100 | ||||||
Dividends declared | 8,500 | ||||||
Sales commissions | 79,500 | ||||||
Management fees | 15,500 | ||||||
Operating expenses (detail omitted to conserve your time) | 53,000 | ||||||
Depreciation expense (including $750 on office equipment) | 6,500 | ||||||
Interest expense | 2,750 | ||||||
Totals | $ | 215,100 | $ | 215,100 | |||
Assuming a 30 percent tax rate.
Required:
1. Prepare a statement of earnings for the fiscal year ended March 31, 2024. (Round "Earnings per share" to 2 decimal places.)
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.)
3. Prepare a classified statement of financial position at March 31, 2024.
4. Compute the net profit margin ratio and the return on equity. (Round the final answers to the nearest whole number)
5. Prepare the closing entries at March 31, 2024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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