Prince Corporation acquired 100 percent of Sword Company on January 1, 20X1 for $203,000. The trial balances for the two companies on December 31, 20x7, included the following amounts: Pr'in'ce Corporation -_. Sword Eon-pa n3 Item liebit' Credit Debit [Credit Cash $ 64,666 $ 32,666 Accounts Receivable 66,666 21,666 Inventory 176,666 168,666 Land 92,390 2?,999 Buildings and Equipment 566,666 154,666 Investment in Sword Company 256,666 Cost of Goods Sold 566,666 255,666 Depreciation Expense 26,666 16,666 Other Expenses 64,666 64,666 Dividends Declared 55,666 26,666 Accumulated Depreciation $ 153,666 $ 56,666 Accounts Payable 53,666 21,666 Mortgages Payable 134,666 116,666 Common Stock 293,666 46,666 Retained Earnings 362,666 94,666 Sale: 69?,666 41?,666 Income from Sword Company 35.1999 $1,82?,660 $1,82?,666 $?49,666 $119,666 Additional Information 1. On January 1, 20x7, Sword reported net assets with a book value of $142,000. A total of $28,000 of the acquisition price is applied to goodwill, which was not impaired in 20x7. 2. Sword's depreciable assets had an estimated economic life of11 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 $16,000 on December 31, 20x7. b. Prepare all consolidating entries needed to prepare a full set of consolidated nancial statements for 20x7. (If no entry is required for a transactionfevent, select "No journal entry required" in the rst account eld.) View tran section list Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Record entry,r Clear entry View consoiidaon entries b. Prepare all consolidating entries needed to prepare a full set of consolidated nancial statements for 20x7. (If no entry is required for a transactionr'event, select "No journal entry required" in the rst account eldJ View transaction list Consolidation Worksheet Entries Record the amortized excess value reclassication entry. Note: Enter debits before credits. Record entry Clear entry view consolidation entries b. Preoare all consolidating entries needed to prepare a full set of consolidated nancial statements for 20x7. (If no entry is required for a transectionr'euent, select "No journal entry required\" in the rst account eldJ Consolidation Worksheet Entries Record the excess value {differential} reclassication entry. Note: Enter debits before credits. Clear entry View consolidation entries b. Prepare all consolidating entries needed to prepare a full set of consolidated nancial statements for 2OX7. {If no entry is required for a transoctionieuent, select \"No journal entry required" in the rst account eldJ View transaction "51. Consolidation Worksheet Entries ( A e c Record the entry to eliminate the intercompany accounts. Note: Enter debits before credits. Record entry.r View consolidation entries b. Prepare all consolidating entries needed to prepare a full set of consolidated nancial statements for 2OX7. {If no entry is required for a transoctiom'event, select "No journal entry required" in the rst account eld.) View transaction list Consolidation Worksheet Entries { A e c o Record the optional accumulated depreciation Consolidation entry. Note: Enter debits before credits. Clear entry View consolidation entries