Requirements

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

What special asset does Central Telecom's acquisition of Surety Wireless identify?

How should Central Telecom account for this asset after acquiring Surety Wireless?

Explain in detail.

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

journal entry table.$)$

Feb. $13$: Central Telecom purchased Surety Wireless Enterprises for $$600,000$ cash plus a $$900,000$ note payable. Surety's book value of assets was $$1,300,000.$ Surety's market

value of assets and liabilities was $$1,700,000$ and $$510,000,$ respectively.