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saw5 [17]
3 years ago
14

How is it possible to have a large amount of assets but only modest net worth?

Business
1 answer:
nevsk [136]3 years ago
3 0

Answer:

one possibility is that you spent more on your assets, than your assets are making. In other words, some assets may have a low or negative net worth

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Journalize the entries to record the following selected transactions.
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Answer:

Journal Entries

                                               Dr.               Cr.

Sale of Merchandise

a. Account Receivable        $4,240

Sales                                                        $4,000

Sales Tax Payable                                  $240

Cost of Goods Sold             $2,360

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b. Payment of Sales Tax

Sales tax Payable                 $42,110

Cash                                                         $42,110

Explanation:

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Tax is paid and sales tax liability is reduced along with cash.

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