Question

Feb. Feb. Rowland & Sons Air Transport Service Ltd. has been in operation for three years. The following transactions occurred in February 2017: Feb. 1 Paid $300 for rent of hangar space in February. 4 Received customer payment of $900 to ship several items to Victoria next month. 7 Flew cargo from Winnipeg to Regina; the customer paid in full ($1,eee cash). Feb. 10 Paid pilot $2,200 in wages for flying in February. Feb. 14 Paid $20 for an advertisement run in the local paper on February 14. Feb. 18 Flew cargo for two customers from Edmonton to Lake Louise for $3,200; one customer paid $1,eee cash and the other asked to be billed $2,200. Feb. 25 Purchased on account $1,458 in spare parts for the planes. Required: 1-a. Prepare 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 5 6 7 Pald $300 for rent of hangar space in February Note: Enter debits before credits General Journal Debit Credit Transaction 02/01

Answer 1

General Journal  

Date	Particulars	Debit	Credit
Feb 01	Rent A/c ... Dr. To Cash A/c (Being rent paid in cash)	300	300
Feb. 04	Cash A/c Dr. To unearned Revenue A/c (Being amount received in advance)	900	900
Feb.07	Cash A/c ... Dr. To Sales A/c ( Being services provided)	1000	1000
Feb. 10	Wages A/c ... Dr. To Cash A/c (Being Wages paid)	2200	2200
Feb. 14	Outstanding Advertisement Expense A/c ...Dr. To Cash A/c ( Being advertisement expense for the feb paid)	200	200
Feb 18	Cash A/c ... Dr. Account Receivable A/c ... Dr. To Sales (Being services provided)	1000 2200	3200
Feb 25	Fittings A/c ... Dr. To Account Payable A/c (Being spare parts for plane purchased)	1450	1450

Answer 1-b

Net Income :

	Particulars	Amount
A.	Revenue (1000+3200)	4200
B.:	Expenses
	Fittings	(1450)
	Wages	(2200)
	Rent	(300)
	Net Income (A-B)	250

Answer 1-c

Net Profit Margin = Profit/Sales*100

=250/4200*100

=5.95%