The adjusted trial balance for Ocean Realty, Inc., at March 31, 2012, follows:

Requirements
1. Prepare Ocean Realty€™s income statement and statement of retained earnings for the year ended March 31, 2012, and year-end balance sheet. List expenses in decreasing order on the income statement.
2. a. Which financial statement reports Ocean Realty€™s results of operations? Were operations successful during 2012? Cite specifics from the financial statements to support your evaluation.
b. Which statement reports the company€™s financialposition?

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Ocean Realty, Inc. Adjusted Trial Balance March 31, 2012 DEBIT ACCOUNT Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation, Equipment Accounts Payable Unearned Service Revenue Interest Payable Salaries Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue Interest Revenue Salaries Expense Rent Expense Depreciation Expense, Equipment Utilities Expense Interest Expense Supplies Expense Total CREDIT 10,200 11,600 1,000 1,300 46,000 12,000 3,300 1,800 540 1,500 9,000 26,000 10,900 19,000 88,000 960 43,000 14,000 4,200 2,800 600 $154,000