Barbara Jones opened Barb's Book Business on February $1.$ You have been hired to maintain the company's financial records. The following transactions occurred in February, the first month of operations.

a$.$ Received shareholders' cash contributions on February $1$ totaling $$30,000$ to form the corporation; issued $1,000$ shares of common stock.

b$.$ Paid $$3,360$ cash on February $2$ for three months' rent for office space.

TIP: For convenience, simply record the full amount of the payment as an asset $($Prepaid Rent$).$ At the end of the month, this account will be adjusted to its proper balance.

c$.$ Purchased and received supplies on February $3$ for $$325$ cash.

d$.$ Signed a promissory note on February $4,$ payable in two years; deposited $$19,200$ in the company's bank account.

e$.$ On February $5,$ paid cash to buy equipment for $$6,850$ and land for $$12,350.$

f$.$ Placed an advertisement in the local paper on February $6$ for $$480$ cash.

g$.$ Recorded sales on February $7$ totaling $$3,600$;$$2,450$ was in cash and the rest on accounts receivable.

h$.$ Collected accounts receivable of $$100$ from customers on February $8.$

i$.$ On February $9,$ repaired one of the computers for $$134$ cash.

TIP: Most repairs involve costs that do not provide additional future economic benefits.

j$.$ Incurred and paid employee wages on February $28$ of $$890.$

Required:

Prepare the journal entry for each of the above transactions.

Post the transaction activity from requirement $1$ to the T$-$Accounts below. All accounts begin with zero balances because this is the first month of operations.

Prepare an unadjusted trial balance at the end of February.

$4-$a$.$ Refer to the revenues and expenses shown on the unadjusted trial balance. Based on this information, calculate preliminary net income and net profit margin?

$4-$b$.$ Determine whether the net profit margin is better or worse than the $20$ percent earned by a close competitor.