Question list $,$

Midland States Telecom, a communication service provider in lowa, Nebraska, the Dakotas, and Montana had the following transactions related to its intangibles during the year:

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Read the requirements.

Question $1$

Question $2$

Requirement $1.$ Journalize the entries to record Midland States Telecom's transactions during the year. $($Record debits first, then credits. Select the explanation on the last line of the journal entry table.$)$

Question $3$

Feb. $13$: Midland States Telecom purchased Simpson Wireless Enterprises for $$560,000$ cash plus a $$840,000$ note payable. Simpson Wireless Enterprises' book value of assets was $$900,000.$ Simpson Wireless Enterprises' fair value of assets and liabilities was $$1,300,000$ and $$630,000,$ respectively.

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$]]$

Question $4$

Question $5$

Transactions

Question $6$

$\backslash$table$[[$Feb$.13,$Midland States Telecom purchased Simpson Wireless Enterprises for $$560,000$ cash plus a$],[,$$$840,000$ note payable. Simpson Wireless Enterprises' book value of assets was $$900,000.$ Simpson$],[,$Wireless Enterprises' fair value of assets and liabilities was $$1,300,000$ and $$630,000,$ respectively.$],[$Apr$.1,\backslash$table$[[$Paid $$250,000$ to acquire a patent. Midland States Telecom believes the patent's useful life will be $10],[$years$.]]],[$Oct$.1,$Paid $$720,000$ for the trademark, "Flicker Fast," with a useful life of $20$ years.$],[$Dec$.31,$Recorded amortization expense $($separately$)$ for the patent and trademark.$]]$

Journalize the entries to record Midland States Telecom's transactions during the year.

What special asset does Midland States Telecom's acquisition of Simpson Wireless Enterprises identify? How should Midland States Telecom account for this asset after acquiring Simpson Wireless Enterprises? Explain in detail.

Answer rating: 100% (QA)

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