Question: Recording Journal Entries Rowland & Sons Air Transport Service has been in operation for three years. The following transactions occurred in February 2009:
Feb. 1 Paid $200 for rent of hangar space in February.
Feb. 2 Purchased fuel costing $450 on account for the next flight to Dallas.
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 $900 for the air transport.
Feb. 10 Paid pilot $1,200 in wages for flying in January.
Feb. 14 Paid $60 for an advertisement to run in the local paper on March 5.
Feb. 18 Flew cargo for two customers from Dallas to Albuquerque for $1,700; one customer paid $500 cash and the other asked to be billed.
Feb. 25 Purchased on account $1,350 in spare parts for the planes.
Feb. 27 Hugh Rowland, owner, withdrew $1,800 cash from the business.
Required: Prepare journal entries for each transaction. Be sure to categorize each account as an asset (A), liability (L), owners' equity (OE), revenue (R), or expense (E).