Rowland & Sons Air Transport Service Ltd. 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 Victoria next month. Feb. 7 Flew cargo from Winnipeg to Regina; the customer paid in full ($900 cash). Feb. 10 Paid pilot $1,200 in wages for flying in February. Feb. 14 Paid $100 for an advertisement run in the local paper on February 14. Feb. 18 Flew cargo for two customers from Edmonton to Lake Louise for $1,700; one customer paid $500 cash and the other asked to be billed $1,200. Feb. 25 Purchased on account $1,350 in spare parts for the planes. Required: 1-a. 10mks Prepare journal entries for each transaction. (If no entry is required for a transaction/event, indicate "No journal entry required") 1-b. 10mks Calculate the companys net income. 1-c. 5mks Calculate the net profit margin expressed as a percent. (Round your answer to one decimal place.) Question 1: Feb. 1: Rent Expense $200 Cash $200 Feb. 4: Cash $800 Unearned Revenue $800 Feb. 7: Cash $900 Service Revenue $900 Feb. 10: Wages Expense $1,200 Cash $1,200 Feb. 14: Advertising Expense $100 Cash $100 Feb. 18: Cash $500 Accounts Receivable $1,200 Service Revenue $1,700 Feb. 25: Spare Parts Expense $1,350 Accounts Payable $1,350 Question 2: To calculate the net income, we need to subtract the total expenses from the total revenue. Total Revenue = $800 (Unearned Revenue) + $900 (Service Revenue) + $1,700 (Service Revenue) = $3,400 Total Expenses = $200 (Rent Expense) + $1,200 (Wages Expense) + $100 (Advertising Expense) + $1,350 (Spare Parts Expense) = $2,850 Net Income = Total Revenue - Total Expenses = $3,400 - $2,850 = $550 Question 3 The net profit margin is calculated by dividing the net income by the total revenue and multiplying by 100. Net Profit Margin = (Net Income / Total Revenue) * 100 = ($550 / $3,400) * 100 16.2%