E3-12 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 $288 for rent of hangar space in February. Feb. 4 Received customer payment of $880 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 $180 for an advertisement run in the local paper on February 14. Feb. 18 Flew cargo for two customers from Dallas to Albuquerque for $1,780; one customer paid $500 cash and the other asked to be 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. Complete this question by entering your answers in the tabs below. 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 Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet General Journal Credit No 1 Date Feb 01 Debit 200 Rent Expense Cash 200 2 Feb 04 1 800 Cash Deferred Revenue Feb 07 900 Cash Service Revenue Feb 10 Salaries and Wages Expense Cash 5 Feb 14 Advertising Expense 100 Cash 6 Feb 18 500 Cash Service Revenue 1,700 7 Feb 25 1,350 Supplies Accounts Payable 1,350