Journalize the entry to record midlands purchase

Assignment Help Accounting Basics

Reference no: EM13701204

Accounting for intangibles

Midland Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana. Midland purchased goodwill as part of the acquisition of Shipley Wireless Company, which had the following figures:

Book value of assets $ 750,000
Market value of assets 1,000,000
Market value of liabilities 530,000

Requirements

1. Journalize the entry to record Midland's purchase of Shipley Wireless for $320,000 cash plus a $480,000 note payable.

2. What special asset does Midland Telecom account for this asset after acquiring Shipley wireless? Explain in details.

Requirement 1

Purchase price to acquire Shipley Wireless

Market value of Shipley Wireless's assets

Less: Shipley Wireless's liabilities

Market value of Shipley Wireless's net assets

Goodwill

Requirement 2

What special asset does Midland's acquisition of Shipley Wireless identify? How should Midland Telecom account for this asset after acquiring Shipley Wireless?

Explain in detail.

Reference no: EM13701204

Questions Cloud

How long would it take to reach the round : A rock takes 2.3 s to hit the ground when it is thrown straight up from the cliff with an initial velocity of 8.2 m/s. How long would it take to reach the round

What is the magnitude of your displacement vector : You walk west 240m and then north 150m. What is the magnitude of your displacement vector

What is the acceleration due to gravity at this location : A simple pendulum of length 1.4 m makes 8 complete oscillations in 19 s. What is the acceleration due to gravity at this location

At what speed should you throw the package : Standing on the ground 2.6m from a building, you want to throw a package from your 1.5-m shoulder level to someone in a window 3.9m above the ground. At what speed should you throw the package

Journalize the entry to record midlands purchase : Journalize the entry to record Midland's purchase of Shipley Wireless for $320,000 cash plus a $480,000 note payable.

Evaluate the magnitude of the velocity of the canoe : A canoe has a velocity of 0.55m/s southeast relative to the earth. The canoe is on a river that is flowing 0.60m/s east relative to the earth, Find the magnitude of the velocity of the canoe

Calculate sparkys net displacement vector : Jim's dog Sparky runs 55.0m northeast to a tree, then 75.0m west to a second tree, and finally 15.0m south to a third tree. Calculate Sparky's net displacement vector

Find the velocity of the rain : A car travels due east with a speed of 48.0 km/h. Raindrops are falling at a constant speed vertically with respect to the Earth. Find the velocity of the rain

How much time must james wait before firing the mortar : Dr. Evil runs out to his car which is parked at the bottom of a hill that is inclined with the horizontal at 20° and blasts up the hill with an acceleration of 6 m/s2. how much time must James wait before firing the mortar

User Account

All Pages