Question: 1. Yang Company reported net income of $37,925 and net sales of $390,000 for the current year. Calculate the company's profit margin and interpret the result. Assume that its competitors earn an average profit margin of 15%.
2. Jordan Air has the following information in its unadjusted and adjusted trial balances. What are the adjusting entries that Jordan Air likely recorded?
Unadjusted Adjusted
Debit Credit Debit Credit
Prepaid insurance . . . . . . . . . . $6,200 $5,900
Salaries payable . . . . . . . . . . $ 0 $1,400