Hello,

How do I figure out the "income from sword company" and the "investment from sword company"?

Journal entry worksheet A B C D Record the initial investment in Sword Co. Note: Enter debits before credits. Event General Journal Debit Credit 1 Common stock 45,000 Retained earnings 97,000 Income from Sword Company Dividends declared 26,000: Investment in Sword Company Record entry Clear entry View general journalPrince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $201,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 94, 000 $ 44,000 Accounts Receivable 51,000 56, 000 Inventory 181, 000 114,000 Land 92,000 39 ,000 Buildings and Equipment 494, 000 154, 000 Investment in Sword Company 257, 000 Cost of Goods Sold 494, 000 255 , 000 Depreciation Expense 20,000 10, 000 Other Expenses 66,000 66,000 Dividends Declared 69,000 26, 000 Accumulated Depreciation 146 , 000 50, 000 Accounts Payable 55,000 27,000 Mortgages Payable 197,000 129 ,000 Common Stock 291, 000 45 ,000 Retained Earnings 366, 000 97,000 Sales 681, 000 416,000 Income from Sword Company 82,000 $1, 818,000 $1, 818, 000 $764, 000 $764, 000 Additional Information 1. On January 1, 20X7, Sword reported net assets with a book value of $142,000. A total of $26,000 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 $22,000 on December 31, 20X7