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will definitely give a thumbs up if all work is completed thanks Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for
will definitely give a thumbs up if all work is completed thanks
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $180,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Sword Company Debit Credit $ 31,000 62,000 110,000 26, 000 163,000 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 $ 93,000 57,000 190,000 91,000 492,000 239,000 492,000 24,000 64,000 65,000 $ 144,000 60,000 190,000 300,000 344,000 690,000 79,000 $1,807,000 $1,807,000 256,000 14,000 64,000 20,000 $ 70,000 24,000 109.000 42,000 85,000 416,000 $746,000 $746,000 Additional Information 1. On January 1, 2007. Sword reported net assets with a book value of $127000. 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, 20XZ.. 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.) 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 B D Record the initial investment in Sword Co. Note: Enter debits before credits. Event General Journal Debit Credit 1 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 required for a 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 dividend. Note: Enter debits before credits. Event General Journal Debit Credit 3 Record entry Clear entry View general joumal 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 worksheetStep by Step Solution
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