Juan Real Estate Company organized as a corporation on

April #905
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, 2015. Use the
following captions (list each item under these captions as appropriate):AssetsCurrent
assetsNon- current assetsLiabilitiesCurrent liabilitiesNon- current liabilitiesShareholders’
EquityContributed capitalRetained earnings4. 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.View
Solution:
Juan Real Estate Company organized as a corporation on April

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