P9-31A Midland Telecom provides communication services in Iowa, Nebraska, the Dakotas, and Montana.

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

less 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.