Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February: Feb. 1 Paid $200 for rent of hangar space in February. Feb. 4 Received customer payment of $800 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 $100 for an advertisement run in the local paper on February 14. Flew cargo for two customers from Dallas to Albuquerque for $1,700; one customer paid $500 cash and the other asked to be Feb. 18 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. No Date General Journal Debit Credit 1 Feb 01 200 Rent Expense Cash 200 2. 2 Feb 04 800 Cash Service Revenue 3 Feb 07 900 Cash Service Revenue 900 4 Feb 10 1,200 Salaries and Wages Expense Cash 1,200 5 Feb 14 100 Advertising Expense Cash 100 6 Feb 18 Cash Accounts Receivable Sales Revenue 795 1,710 2,510 7 Feb 25 1,350 Inventory Accounts Payable 1,350 Required 1 Required 2 > Calculate the company's preliminary net income. Preliminary Net Income Net Profit Margin %