Rowland Sons Air Transport Service Inc has been in operatio

Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February 2013: Feb. 1 Paid $415 for rent of hangar space in February. Feb. 4 Received customer payment of $1,760 to ship several items to Philadelphia next month. Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($1,130 cash). Feb. 10 Paid pilot $2,250 in wages for flying in February. Feb. 14 Paid $134 for an advertisement run in the locall paper on February 14. Feb. 18 Flew cargo for two customers from Dallas to Albuquerque for $2,335; one customer paid $775 cash and the other asked to be billed $1,560 Feb. 25 Purchased on account $1,680 in supplies for future use on the planes. Required: 1. Prepare accrual basis journal entries for each transaction. ( no entry is required for a transactionlevent, select \"No Journal Entry Required\" in the first account field.) iew transaction list Journal entry worksheet Record the payment of $415 for rent of hangar space in February. Note: Enter debits before credits. Date General Journal Debit Credit Feb 01

Solution

1 Date General Journal Debit Credit Feb 01 Rent Expense $         415 Cash $         415 Feb 04 Cash $      1,760 Unearned Revenue $      1,760 Feb 07 Cash $      1,130 Service Revenue $      1,130 Feb 10 Salaries and Wages Expense $      2,250 Cash $      2,250 Feb 14 Advertising Expense $         134 Cash $         134 Feb 18 Cash $         775 Accounts Receivable $      1,560 Service Revenue $      2,335 Feb 25 Supplies $      1,680 Accounts Payable $      1,680 2 Preliminary Net Income $                                   666.00 (1130+2335 - 415-2250-134) Service Revenue(1130+2335) $          3,465 Less: Expenses(415+2250+134)            (2,799) $              666