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Required: a. Prepare all journal entries recorded by Prince with regard to its investment in Sword during 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $195,000. The trial balances for the two companies on December 31, 20X7, included the following amounts Prince Corporation Debit Sword Como an Debit Item Credit Credit $84, 000 56, 000 175, 000 82, 000 491, 000 248, 000 491, 000 24, 000 72, 000 52, 000 $27, 000 61, 000 109, 000 22, 000 157, 000 Accounts Receivable Inventory an Buildings and Equipment Investment in Sword Company Cost of Goods Sold Depreci ation Expense Other Expenses Dividends Declared Accumul ated Depreciatiorn Accounts Payable Mortgages Payable Common Stock Retained Eamings Sales Income from Sword Company 256, 000 14, 000 72, 000 20, 000 $146, 000 57, 000 186, 000 287, 000 338, 000 688, 000 73, 000 $1,775, 000 $70, 000 22, 000 86, 000 46, 000 96, 000 418, 000 $1, 775, 000 $738, 000 $738, 000 Additional Information 1. On January 1, 20X7, Sword reported net assets with a book value of $142,000. A total of $20,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7 2. Sword's depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. 3. Prince used the equity-method in accounting for its investment in Sword 4. Detailed analysis of receivables and payables showed that Sword owed Prince $17,000 on December 31, 20x7 Required: a. Prepare all journal entries recorded by Prince with regard to its investment in Sword during 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)