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

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Accounting

Rowland & Sons Air Transport Service, Incorporated, has been in operation for three years. The following transactions occurred in February:
February 1 Paid $300 to rent equipment that was used and returned today.
February 4 Received customer payment of $1,500 to ship several items to Philadelphia next month.
February 7 Flew cargo from Denver to Dallas; the customer paid in full ($940 cash).
February 10 Incurred and paid $2,600 in pilot wages for flying in February.
February 14 Paid $192 for an advertisement run in the local paper on February 14.
February 18 Flew cargo for two customers from Dallas to Albuquerque for $2,505; one customer paid $795 cash and the other asked to be billed $1,710.
February 25 Purchased on account $1,730 in supplies for future use on the planes.
Required:
Prepare accrual basis journal entries for each transaction.
Calculate the companys preliminary net income.
Calculate the companys net profit margin expressed as a percent.

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