Rowland & Sons Air Transport Service, Incorporated, has been in operation for three years. The following transactions occurred in February:

February $1$ Paid $$555$ to rent equipment that was used and returned today.

February $4$ Received customer payment of $$1,100$ to ship several items to Philadelphia next month.

February $7$ Flew cargo from Denver to Dallas; the customer paid in full $($$$1,100$ cash$).$

February $10$ Incurred and paid $$1,850$ in pilot wages for flying in February.

February $14$ Paid $$164$ for an advertisement run in the local paper on February $14.$

February $18$ Flew cargo for two customers from Dallas to Albuquerque for $$2,365$; one customer paid $$825$ cash and the other asked to be billed $$1,540.$

February $25$ Purchased on account $$1,570$ in supplies for future use on the planes.

Required:

Prepare accrual basis journal entries for each transaction.

Calculate the company$$s preliminary net income.

Calculate the company$$s net profit margin expressed as a percent.

Answer rating: 100% (QA)

1 Accrual Basis Journal Entries February 1 Paid rent for equipment Rent Expense 555 Cash 555 F... View the full answer