PRINCE CORPORATION AND SUBSIDIARY* Consolidated Financial Statements Worksheet December 31, 20X'T Consolidation Entries Prince Corp Sword CO OR CR Consolidated Income Statement Sales LESS . LOGS Less : Depreciation expense Less: Other EXPENSES Income from Sword CO. Net Income* Statement of Retained Earnings Beginning balance Net income Less : Dividends declared Ending Balance* Balance Sheet Assets Cash Accounts receivable Inventory Land Buildings & Equipment LESS: Accumulated depreciation Investment in Sword CO . Goodwill Total Assets Liabilities & Equity Accounts payable* Mortgages payable Common stock Retained earnings Total Liabilities & Equity*Prince Corporation acquired 100 percent of Sword Company on January 1, 20:0, for $195,000. The trial balances for the two companies on December 31, 20x7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 84, 888 $ 27, 888 Accounts Receivable 56, 888 61, 888 Inventory 175, 888 189, 888 Land 82, 888 22, 888 Buildings and Equipment 491, 888 157, 888 Investment in Sword Company 248, 888 Cost of Goods Sold 491, 888 256, 888 Depreciation Expense 24, 888 14, 888 Other Expenses 72, 888 72, 888 Dividends Declared 52, 888 28, 888 Accumulated Depreciation $ 146, 888 $ 78, 888 Accounts Payable 57, 888 22, 888 Mortgages Payable 186,888 86, 888 Common Stock 287, 888 46, 888 Retained Earnings 338, 888 96, 888 Sales 688,888 418,888 Income from Sword Company 73, 888 $1, 775, 888 $1, 775, 888 $738, 888 $738, 888 Additional Information 1. On January 1, 20x7, Sword reported net assets with a book value of $142,000. Atotal 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 of11 years on the date of combination. The difference between fair value and book value oftangible 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 $17,000 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 transactionleuent, select "Nojournal entry required" in the rst account eld.)