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 Website.
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.