write my assignment 19515
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $192,000. The trial balances for the two companies on December 31, 20X7, included the following amounts:
- On January 1, 20X7, Sword reported net assets with a book value of $129,000. A total of $30,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7.
- 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.
- Prince used the equity-method in accounting for its investment in Sword.
- Detailed analysis of receivables and payables showed that Sword owed Prince $18,000 on December 31, 20X7.
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.)
b. Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20X7. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
c. Prepare a three-part consolidation worksheet as of December 31, 20X7. (Values in the first two columns (the “parent” and “subsidiary” balances) that are to be deducted should be indicated with a minus sign, while all values in the “Consolidation Entries” columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)