A-RECORD THE INITIAL INVESTMENT IN SWORD CO.

Investment in Sword Co

Cash

B-RECORD PRINCE CORPS SHARE OF SWORD COS 2017 INCOME

Investment in Sword Co

Income from Sword Co

C-RECORD PRINCE CORPS SHARE OF SWORD CO.S 2017 DIVIDEND

Cash

Investment in Sword Co

D-RECORD THE AMORTIZATION OF THE EXCESS ACQUISITION PRICE.

Income from Sword Co

Investment in Sword Co

Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20X7

A-RECORD THE BASIC CONSOLIDATION ENTRY

Common stock

Retained earnings

Income from Sword Co

Dividends declared

Investment in Sword Co

B-RECORD THE AMORTIZED EXCESS VALUE RECLASSIFICATION ENTRY

Depreciation expense

Income from Sword Co

C-RECORD THE EXCESS VALUE (DIFFERENTIAL) RECLASSIFICATION ENTRY

Buildings and equipment

Goodwill

Accumulated dep

Investment in Sword Company

D-RECORD THE ENTRY TO ELIMINATE THE INTERCOMPANY ACCOUNTS

AP

AR

E-RECORD THE OPTIONAL ACCUMULATED DEPRECIATION CONSOLIDATION ENTRY

Accumulated Dep

Buildings and equipment

need help please

Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $192,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Debit Sword Company Credit Credit Debit Item $ 43,000 68,000 108,000 38,000 164,000 Cash $ 91,000 Accounts Receivable Inventory 63,000 185,000 89,000 493,000 Land Buildings and Equipment Investment in Sword Company Cost of Goods Sold 251,000 250,000 493,000 24,000 Depreciation Expense Other Expenses Dividends Declared 14,000 65,000 53,000 65,000 23,000 S 141,000 Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings $70,000 26,000 127,000 44,000 92,000 414,000 56,000 196,000 286,000 347,000 Sales 699.000 Income from Sword Company 82,000 $1,807,000 S1,807,000 $773,000 $773,000 Additional Information 1. On January 1, 20X7, Sword reported net assets with a book value of $136,000. A total of $23,000 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 $21,000 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.)