The following are selected 2020 transactions of Astin Corporation. Sept. 1 Purchased inventory from Encino Company on account for $50,000. Astin records purchases gross and uses a periodic inventory system.
Oct. 1 Issued a $50,000, 12-month, 8% note to Encino in payment of account.
Oct. 1 Borrowed $50,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $54,000 note.
Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts.

Answer and Explanation:

The journal entries are shown below;

On Sept. 1

Purchases  $50,000

       To Accounts Payable   $50,000

(being the purchase is recorded)

On Oct. 1

Accounts Payable  $50,000

         To Notes Payable  $50,000

(being issuance is recorded)

Oct. 1

Cash  $50,000

Discount on Notes Payable ($54,000 - $50,000)  $4,000

     To Notes Payable  $54,000

(being the borrowed is recorded)

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation: