Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $188,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Item Cash Prince Corporation Debit $ 90,000 Sword Company Debit Credit $ 31,000 Credit Accounts Receivable Inventory Land 61,000 184,000 88,000 Buildings and Equipment 498,000 66,000 103,000 26,000 154,000 Investment in Sword Company 258,000 Cost of Goods Sold 498,000 253,000 Depreciation Expense 20,000 10,000 Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable 55,000 55,000 61,000 20,000 $ 144,000 $ 50,000 65,000 27,000 194,000 95,000 Common Stock 284,000 50,000 Retained Earnings 344,000 85,000 Sales 692,000 411,000 Income from Sword Company $1,813,000 90,000 $1,813,000 $718,000 $718,000 Additional Information 1. On January 1, 20X7, Sword reported net assets with a book value of $135,000. 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 $22,000 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.) Record the initial investment in Sword Co. B Record Prince Corp's share of Sword Co.'s 20X7 income. C Record Prince Corp's share of Sword Co.'s 20X7 dividend. D Record the amortization of the excess acquisition price. Note: = = journal entry has been entered Journal entry worksheet < A B C D Record the initial investment in Sword Co. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal