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: $ Prince Corporation Debit Credit 84,000 53,000 170,000 82,000 492,000 Sword Company Debit Credit $ 29,000 58,000 103,000 24,000 170,000 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 230,000 492,000 21,000 73,000 63,000 258,000 11,000 73,000 20,000 $ 55,000 $ 144,000 51,000 187,000 280,000 356,000 680,000 62,000 $1,760,000 24,000 125,000 45,000 90,000 407,000 $1,760,000 $746,000 $746,000 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 $19,000 on December 31, 20X7. Consolidation Worksheet Entries A B C D E Record the basic consolidation entry. Note: Enter debits before credits. Accounts Debit Credit Event 1 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries