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

following transactions occurred in February:

February $1$ Paid $$670$ to rent equipment that was used and returned today.

February $4$ Received customer payment of $$1,560$ to ship several items to Philadelphia next

month.

February $7$ Flew cargo from Denver to Dallas; the customer paid in full $($ $$1,870$ cash$).$

February $10$ Incurred and paid $$2,150$ in pilot wages for flying in February.

February $14$ Paid $$220$ for an advertisement run in the local paper on February $14.$

February $18$ Flew cargo for two customers from Dallas to Albuquerque for $$2,090$; one customer

paid $$880$ cash and the other asked to be billed $$1,210.$

February $25$ Purchased on account $$1,770$ in supplies for future use on the planes.

Required:

Prepare accrual basis journal entries for each transaction.

Calculate the company's preliminary net income.

Calculate the company's net profit margin expressed as a percent.

Complete this question by entering your answers in the tabs below.

Calculate the company's preliminary net income.

Preliminary Net Income