Question

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 $675 of advertising services provided this month on account b. OTT repaired some of NN's equipment this month for $165 on account CNN collected $675 cash from OTT for the advertising services provided in (a) d. NN paid $70 cash to OTT for OTT advertising NN's online newspaper this month on OTT's Website. e OTT and NN signed a promissory note, documenting OTT's $2,000 cash loan to NN this month with repayment to occur in six months Required: 1. Show the journal entries that OTT would record for items (o)-(e) 2. Show the journal entries that NN would record for items (@-le! Complete this question by entering your answers in the tabs below.

Answer 1

In the books OTT Sr. No. Particulars Debit a Advertisement Expense $ 675.00 Credit Credit In the books NN Sr. No Particulars Debit a OTT $ 675.00 Service Revenue NN $ 675.00 $ 675.00 b $ 165.00 b NN Service Revenue Repairs Expense OTT $ 165.00 $ 165.00 $ 165.00 675.00 C CNN Cash Cash OTT $ 675.00 $ 675.00 $ 675.00 d Cash Service Revenue $ 70.00 d Advertisement Expense Cash $ 70.00 $ 70.00 $ 70.00 e Notes Receivable Cash $ 2,000.00 e Cash Notes Payable $ 2,000.00 $ 2,000.00 $ 2,000.00