Reference no: EM131256723
Rowland & Sons Air Transport Service, Inc. has been in operation for three years. The following transactions occurred in February:
Feb. 1 Paid $410 for rent of hangar space in February.
Feb. 4 Received customer payment of $1,740 to ship several items to Philadelphia next month.
Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($1,230 cash).
Feb. 10 Paid pilots $3,000 in wages for flying in February.
Feb. 14 Paid $128 for an advertisement run in the local paper on February 14.
Feb. 18 Flew cargo for two customers from Dallas to Albuquerque for $2,820; one customer paid $660 cash and the other asked to be billed $2,160.
Feb. 25 Purchased on account $1,510 in supplies for future use on the planes.
Required:
1. Prepare accrual basis journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Calculate the company’s preliminary net income
Calculate the company’s net profit margin expressed as a percent. (Round your answer to 1 decimal place.)
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