Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $197,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: 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 93,000 51.000 178,000 91,000 494,000 251,000 494.000 21,000 60,000 70,000 148,000 64,000 192,000 292.000 333,000 699,000 75,000 $1.803.000 $1,803,000 Sword Company Debit Credit $ 44,000 56,0001 106,000 39,000 151,000 258,000 11.000 60.000 21,000 55,000 33.000 100.000 48,000 95.000 407,000 $ 746,000 $746,000 Additional Information 1. On January 1, 20X7, Sword reported net assets with a book value of $143,000. A total of $21,000 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 $28,000 on December 31, 20x7. Required: * Prepare all journal entries recorded by Prince with record to its investment in Sword durina 20x7 af no entry is required for a Required: a. Prepare all journal entries recorded by Prince with regard to its investment in Sword during 20x7. (If no entry is reg transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the initial investment in Sword Co. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Required: a. Prepare all journal entries recorded by Prince with regard to its investment in Sword during 20x7. (If no entry is transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record Prince Corp's share of Sword Co.'s 20X7 income. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Required: a. Prepare all journal entries recorded by Prince with regard to its investment in Sword during 20X7. (If no entry is transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet