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Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $196,000. The trial balances for the two companies on December 31, 20X7,
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $196,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Item Sword Company Debit Credit $ 37,000 64,080 114,000 32,000 152,009 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 59,009 174,609 90,000 493,eee 251,000 493,880 25,000 56,089 65,000 149,080 65, 880 197,000 282,000 332,000 696,000 77,080 $1,798,000 $1,798,820 256,000 15,080 56.000 22,800 $ 25,000 2 1, eee 104,000 41,000 100,000 407,000 5748,000 $ 748,000
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