Fundamentals of Financial Accounting

5th Edition

ISBN: 9780078025914

Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 3, Problem 3.14E

Analyzing Transactions from the Perspectives of Different Companies

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:

$how 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.

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Chapter 3, Problem 3.13E

Chapter 3, Problem 3.15E

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Chapter 3 Solutions

Fundamentals of Financial Accounting

Ch. 3 - Prob. 1Q Ch. 3 - When accounting was developed in the 14th and 15th...Ch. 3 - Define accrual basis accounting and contrast it...Ch. 3 - Prob. 4Q Ch. 3 - Prob. 5Q Ch. 3 - Prob. 6Q Ch. 3 - Explain the expense recognition principle...Ch. 3 - Explain why stockholders equity is increased by...Ch. 3 - Explain why revenues are recorded as credits and...Ch. 3 - Complete the following table by entering either...

Ch. 3 - Complete the following table by entering either...Ch. 3 - Prob. 12Q Ch. 3 - Prob. 13Q Ch. 3 - What is the difference between Accounts Receivable...Ch. 3 - What is the difference between Accounts Payable...Ch. 3 - For each of the following situations, indicate...Ch. 3 - Prob. 17Q Ch. 3 - Which of the following items is not a specific...Ch. 3 - Prob. 2MC Ch. 3 - Prob. 3MC Ch. 3 - Prob. 4MC Ch. 3 - If a company incorrectly records a payment as an...Ch. 3 - Prob. 6MC Ch. 3 - Prob. 7MC Ch. 3 - Prob. 8MC Ch. 3 - Webby Corporation reported the following amounts...Ch. 3 - Prob. 10MC Ch. 3 - Prob. 3.1ME Ch. 3 - Identifying Accrual Basis Revenues The following...Ch. 3 - Identifying Accrual Basis Expenses The following...Ch. 3 - Recording Accrual Basis Revenues For each of the...Ch. 3 - Recording Accrual Basis Expenses For each of the...Ch. 3 - Prob. 3.6ME Ch. 3 - Prob. 3.7ME Ch. 3 - Prob. 3.8ME Ch. 3 - Prob. 3.9ME Ch. 3 - Identifying Accrual Basis Expenses The following...Ch. 3 - Prob. 3.11ME Ch. 3 - Recording Accrual Basis Expenses For each of the...Ch. 3 - Prob. 3.13ME Ch. 3 - Preparing Accrual Basis Journal Entries for...Ch. 3 - Preparing Accrual Basis Journal Entries for...Ch. 3 - Prob. 3.16ME Ch. 3 - Determining the Accounting Equation Effects of...Ch. 3 - Prob. 3.18ME Ch. 3 - Preparing an Income Statement and Calculating Net...Ch. 3 - Preparing Financial Statements from a Trial...Ch. 3 - Preparing an Income Statement and Calculating Net...Ch. 3 - Prob. 3.22ME Ch. 3 - Calculating and Interpreting Net Profit Margin...Ch. 3 - Prob. 3.1E Ch. 3 - Matching Definitions with Terms Match each...Ch. 3 - Identifying Accrual Basis Revenues According to...Ch. 3 - Identifying Accrual Basis Revenues According to...Ch. 3 - Identifying Accrual Basis Expenses Under accrual...Ch. 3 - Identifying Accrual Basis Expenses Under accrual...Ch. 3 - Determining Accounting Equation Effects and Net...Ch. 3 - Determining Accounting Equation Effects and Net...Ch. 3 - Recording Journal Entries and Determining Net...Ch. 3 - Prob. 3.10E Ch. 3 - Recording Journal Entries and Determining Net...Ch. 3 - Recording and Posting Accrual Basis Journal...Ch. 3 - Prob. 3.13E Ch. 3 - Analyzing Transactions from the Perspectives of...Ch. 3 - Prob. 3.15E Ch. 3 - Determining Accounting Equation Effects of Several...Ch. 3 - Preparing Journal Entries For each of the...Ch. 3 - Prob. 3.18E Ch. 3 - Creating an Unadjusted Trial Balance Based on the...Ch. 3 - Inferring Transactions, Creating Financial...Ch. 3 - Determining the Effects of Various Transactions EZ...Ch. 3 - COACHED PROBLEMS Recording Nonquantitative Journal...Ch. 3 - Prob. 3.2CP Ch. 3 - Prob. 3.3CP Ch. 3 - Prob. 3.4CP Ch. 3 - Prob. 3.1PA Ch. 3 - Recording Journal Entries Diana Mark is the...Ch. 3 - Analyzing the Effects of Transactions Using...Ch. 3 - Prob. 3.4PA Ch. 3 - Prob. 3.1PB Ch. 3 - Prob. 3.2PB Ch. 3 - Analyzing the Effects of Transactions Using...Ch. 3 - Analyzing, Journalizing, and Interpreting Business...Ch. 3 - Prob. 3.1COP Ch. 3 - SKIL_S DEVELOPMENT CASES Finding Financial...Ch. 3 - Prob. 3.2SDC Ch. 3 - Prob. 3.4SDC Ch. 3 - Ethical Decision Making: A Mini-Case Mike Lynch is...Ch. 3 - Accounting for Business Operations Starting in...

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Solution Summary: The author explains that the journal is the book of original entry and consists of the day today financial transactions in a chronological order.

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Chapter 3 Solutions