Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 89

Analyzing Transactions from Seller and Buyer Perspectives
Over-the-Top Technologies (OTT) operates a computer repair and web consulting business. News Now (NN) publishes a local newspaper. The two companies entered into the following transactions.
a. NN billed OTT for $500 of advertising services provided this month on account.
b. OTT repaired some of NN's equipment this month, for $135 on account.
c. NN Collected $500 cash from OTT for the advertising services provided in ( a ).
d. NN paid $60 cash to OTT for OTT advertising NN's online newspaper this month on OTT's Web site.
e. OTT and NN signed a promissory note, documenting OTT's $1,000 cash loan to NN this month with repayment to occur in six months.
Required:
Show the journal entries that OTT and NN would record for items (a)-(e). Use a two-part table, with the left side showing OTT's journal entries and the right side showing NN's journal entries.