E3-11 Recording Journal Entries and Determining Net Income and Net Profit Margin [LO 3-2, LO 3-3, LO 3-5] Rowland & Sons Air Transport Service, Inc. has been in operation for three years. The following transactions occurred in February: Feb. 1 Paid $500 for rent of hangar space in February Feb. 4 Received customer payment of $1,510 to ship several items to Philadelphia next month. Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($1,410 cash). Feb. 10 Paid pilots $1,500 in wages for flying in February. Feb. 14 Paid $116 for an advertisement run in the local paper on February 14. Feb. 18 Flew cargo for two customers from Dallas to Albuquerque for $2,130; one customer paid $860 cash and the other asked to be billed $1,270. Feb. 25 Purchased on account $1,755 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.) View transaction list Journal entry worksheet 2 3 4 5 6 7 Paid $500 for rent of hangar space in February. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Date Feb 01 Record entry Clear entry View general journal 2. Calculate the company's preliminary net income Preliminary Net Income L 3. Calculate the company's net profit margin expressed as a percent. (Round your answer to 1 decimal place.) Net Profit Margin