Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following...

 

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Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February: Feb. 1 Paid $200 for rent of hangar space in February. Feb. 4 Received customer payment of $800 to ship several items to Philadelphia next month. Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($900 cash). Feb.10 Incurred and paid $1,200 in pilot wages for flying in February. Feb.14 Paid $100 for an advertisement run in the local paper on February 14. Flew cargo for two customers from Dallas to Albuquerque for $1,700; one customer paid $500 cash and the other asked to be Feb. 18 billed $1,200. Feb.25 Purchased on account $1,350 in supplies for future use on the planes. Required: 1. Prepare accrual basis journal entries for each transaction. 2. Calculate the company's preliminary net income. 3. Calculate the company's net profit margin expressed as a percent. Required 1 Required 2 Required 3 Prepare accrual basis journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journa Entry Required" in the first account field.) No Date General Journal Debit Credit Rent Expense Cash 1 2 3 4 10 5 (.O. 6 7 Feb 01 Feb 04 Feb 07 Feb 10 Feb 14 Feb 18 Feb 25 Cash Deferred Revenue Service Revenue Salaries and Wages Expense Cash Advertising Expense Cash Cash Accounts Receivable Service Revenue Accounts Payable Cash Supplies < Required 1 >> >> Required 2 > 200 800 900 1,200 100 500 1,200 1,350 200 800 900 1,200 100 1,700 1,350 Required 1 Required 2 Required 3 Calculate the company's preliminary net income. Preliminary Net Income < Required 1 Required 3 > Required 1 Required 2 Required 3 Calculate the company's net profit margin expressed as a percent. (Round your answer to 1 decimal place.) Net Profit Margin % Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February: Feb. 1 Paid $200 for rent of hangar space in February. Feb. 4 Received customer payment of $800 to ship several items to Philadelphia next month. Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($900 cash). Feb.10 Incurred and paid $1,200 in pilot wages for flying in February. Feb.14 Paid $100 for an advertisement run in the local paper on February 14. Flew cargo for two customers from Dallas to Albuquerque for $1,700; one customer paid $500 cash and the other asked to be Feb. 18 billed $1,200. Feb.25 Purchased on account $1,350 in supplies for future use on the planes. Required: 1. Prepare accrual basis journal entries for each transaction. 2. Calculate the company's preliminary net income. 3. Calculate the company's net profit margin expressed as a percent. Required 1 Required 2 Required 3 Prepare accrual basis journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journa Entry Required" in the first account field.) No Date General Journal Debit Credit Rent Expense Cash 1 2 3 4 10 5 (.O. 6 7 Feb 01 Feb 04 Feb 07 Feb 10 Feb 14 Feb 18 Feb 25 Cash Deferred Revenue Service Revenue Salaries and Wages Expense Cash Advertising Expense Cash Cash Accounts Receivable Service Revenue Accounts Payable Cash Supplies < Required 1 >> >> Required 2 > 200 800 900 1,200 100 500 1,200 1,350 200 800 900 1,200 100 1,700 1,350 Required 1 Required 2 Required 3 Calculate the company's preliminary net income. Preliminary Net Income < Required 1 Required 3 > Required 1 Required 2 Required 3 Calculate the company's net profit margin expressed as a percent. (Round your answer to 1 decimal place.) Net Profit Margin %

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