Prince Corpcration holds 75 percent of the common stock of Sword Distrbutors Inc., purchased on December 31, 20X1, for $2,160,000. At the date of acquisition, Sword reported common stock with a par value of 930.000, addrional paid-in capital or 1280,000, and retained earnings of 5520,000. The fair value of the noncontrolling interest at acquistion was 720,000. The dferential at acquisition was attrlbutable to the tollowing items: Innrentory (sold in 20X2) Land Goodwill Tatal Dittarantia 37 500 52 500 60 000 $150000 avs Prince a ect et cf 82 000 er 't at for these serwoes Al tient er 31 20X8 Swird (wed Primce 20 500 as t frial 2 8 ipuarlesly cortmun tiasis word ayrr ent under the contract on January 2 20X8 nce pad 250 00 to s or to purchase equip the drfcremial assigncd to goodwill has not becn impaired ent that s o d car yr g at $300,000 S rd had pu chased that equipment on Dece ter 27 20x2. tor $450 000 The equip ent total 15-year lne and no salvage value Thc amount of as the s expone to have At December 31, 200x8, tral balances for Prince and Sword appeared as tollows: Princa Sword Distributors Inc 5 53.000 5400 235.900 Cush Cumant Recalvahles Inmrenbory Investmant in Swond Distributors Land Buildings & Eqipment Cost of Goods Sold Dapreclation & Amontization Other Expenses Dvidands Declared Accumulated Depreciation Cumrent Payablas Bonds Payable Common Stock Additional Paid-in Capital Retainad Eaings, January 1 5 65,700 107 800 300,000 2,846 625 418,000 2.460 000 2,188,000 83 000 1,373,000 13 000 1,201.000 17.000 87 000 211,000 13.000 51,097,000 92 200 853.000 93 000 1,257,000 1472 800 4,890, 125 2 000 138.000 419000 62 300 180,000 1,280,000 995.000 Other Income or L08s Income from Sword Distributons Tata 32.000 As af December 31, 20xa, Sword had dedared but nct yet paid its fourth-quarter dividend of $5,c00 Both companies use straighi-line depreciation and amertization. Prince uses the fully adjusted equity method to account for its irnvestment in Swerd Required: al Compute the amount of the rinerental 5of January 1, 20X8 b. Venty the balance in Prince's Investmen in Sword Distributors account as of December 31, 2OXE C. Present all consolikdation entrlas that would appear In a three-part consolldation worksheet as or December 31, 20X8. of no entry is required for a transactionlevent, select "No Journal entry required" in the first account field. Round your answers to nearest whole dellar amount.) Consolidation Worksheet Entries A BCDEFH Recurd the bosic onsoliklation entry Record entry Clear entry d. Prepare and complate a three-part worksheet for the preparation of consolidated financial statements for 20x8. (values in the first two columns (the "parent and "subsidiary" balances) that are to be deducted should be Indicated with a minus sign, while all values in the Consolildation Entries" columns should be entered as posltive values. For accounts where multiple adjusting entries are required, combine all debit entries Into one amount and enter this amount in the debit column of the worksheet. gimilarly, combine all credit entries Into one amount and enter this amount In the credit column of the worksheet) Consolidated Financial Statement Workshect Deccmber 31, 20XD Sword Prince Corp. DR CR Income Statement Salcs Other income (los) Less: COGS Less: Depreciation& amort opense Los: Other ooxpanses Incoma from Sword Dist Consolidated nat incoma NCI in nat incoma Controlling Interast in N Statemant of Retainad Famings Bagnning baance Nat income Les idands dedared Ending Balance Bolance Sheet Cesh Curent receivables Land Buldings & equipement Less. Accurmulaied depr. nvestmen in Sword Dist Goodwil Total Assets Current payables Bonds parable Common stock Additional Paid in capital Retained carnings NCI in NA of Sword Dict. Total Liabilities& Equity Prince Corpcration holds 75 percent of the common stock of Sword Distrbutors Inc., purchased on December 31, 20X1, for $2,160,000. At the date of acquisition, Sword reported common stock with a par value of 930.000, addrional paid-in capital or 1280,000, and retained earnings of 5520,000. The fair value of the noncontrolling interest at acquistion was 720,000. The dferential at acquisition was attrlbutable to the tollowing items: Innrentory (sold in 20X2) Land Goodwill Tatal Dittarantia 37 500 52 500 60 000 $150000 avs Prince a ect et cf 82 000 er 't at for these serwoes Al tient er 31 20X8 Swird (wed Primce 20 500 as t frial 2 8 ipuarlesly cortmun tiasis word ayrr ent under the contract on January 2 20X8 nce pad 250 00 to s or to purchase equip the drfcremial assigncd to goodwill has not becn impaired ent that s o d car yr g at $300,000 S rd had pu chased that equipment on Dece ter 27 20x2. tor $450 000 The equip ent total 15-year lne and no salvage value Thc amount of as the s expone to have At December 31, 200x8, tral balances for Prince and Sword appeared as tollows: Princa Sword Distributors Inc 5 53.000 5400 235.900 Cush Cumant Recalvahles Inmrenbory Investmant in Swond Distributors Land Buildings & Eqipment Cost of Goods Sold Dapreclation & Amontization Other Expenses Dvidands Declared Accumulated Depreciation Cumrent Payablas Bonds Payable Common Stock Additional Paid-in Capital Retainad Eaings, January 1 5 65,700 107 800 300,000 2,846 625 418,000 2.460 000 2,188,000 83 000 1,373,000 13 000 1,201.000 17.000 87 000 211,000 13.000 51,097,000 92 200 853.000 93 000 1,257,000 1472 800 4,890, 125 2 000 138.000 419000 62 300 180,000 1,280,000 995.000 Other Income or L08s Income from Sword Distributons Tata 32.000 As af December 31, 20xa, Sword had dedared but nct yet paid its fourth-quarter dividend of $5,c00 Both companies use straighi-line depreciation and amertization. Prince uses the fully adjusted equity method to account for its irnvestment in Swerd Required: al Compute the amount of the rinerental 5of January 1, 20X8 b. Venty the balance in Prince's Investmen in Sword Distributors account as of December 31, 2OXE C. Present all consolikdation entrlas that would appear In a three-part consolldation worksheet as or December 31, 20X8. of no entry is required for a transactionlevent, select "No Journal entry required" in the first account field. Round your answers to nearest whole dellar amount.) Consolidation Worksheet Entries A BCDEFH Recurd the bosic onsoliklation entry Record entry Clear entry d. Prepare and complate a three-part worksheet for the preparation of consolidated financial statements for 20x8. (values in the first two columns (the "parent and "subsidiary" balances) that are to be deducted should be Indicated with a minus sign, while all values in the Consolildation Entries" columns should be entered as posltive values. For accounts where multiple adjusting entries are required, combine all debit entries Into one amount and enter this amount in the debit column of the worksheet. gimilarly, combine all credit entries Into one amount and enter this amount In the credit column of the worksheet) Consolidated Financial Statement Workshect Deccmber 31, 20XD Sword Prince Corp. DR CR Income Statement Salcs Other income (los) Less: COGS Less: Depreciation& amort opense Los: Other ooxpanses Incoma from Sword Dist Consolidated nat incoma NCI in nat incoma Controlling Interast in N Statemant of Retainad Famings Bagnning baance Nat income Les idands dedared Ending Balance Bolance Sheet Cesh Curent receivables Land Buldings & equipement Less. Accurmulaied depr. nvestmen in Sword Dist Goodwil Total Assets Current payables Bonds parable Common stock Additional Paid in capital Retained carnings NCI in NA of Sword Dict. Total Liabilities& Equity