Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $193,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Sword Company Debit Credit $ 35,000 63,000 113,000 30,000 157,000 Item Cash Accounts Receivable Inventory Land Buildings and Equipment Investment in Sword Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales Income from Sword Company Prince Corporation Debit Credit $ 89,000 58,000 181,000 87,000 499,000 244,000 499,000 25,000 68,000 53,000 $ 145,000 56,000 187,000 292,000 347,000 699,000 77,000 $1,803,000 $1,803,000 250,000 15,000 68,000 26,000 $ 75,000 28,000 107,000 42,000 92,000 413,000 $757,000 $757,000 1. On January 1, 20X7, Sword reported net assets with a book value of $134,000. 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 $23,000 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.) Journal entry worksheet B C D Record the initial investment in Sword Co. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet