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: Sword Company Debit Credit $ 31,000 69,000 118,000 26,000 161,000 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 $ 92,000 64,000 178,000 90,000 492,000 220,000 492,000 25,000 70,000 59,000 $ 150,000 67,000 199,000 290,000 329,000 691,000 56,000 $1,782,000 $1,782,000 257,000 15,000 70,000 24,000 $ 75,000 32,000 132,000 44,000 87,000 401,000 $771,000 $771,000 Additional Information 1. On January 1, 20X7, Sword reported net assets with a book value of $131,000. A total of $24,000 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 $27,000 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.) View transaction list Journal entry worksheet