1. On January 1, 20X7, Sword reported net assets with a book value of $132,000. 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 $15,000 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 transaction/event, select "No Journal entry required" In the first account field.) View transaction list
1. On January 1, 20X7, Sword reported net assets with a book value of $132,000. 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 $15,000 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 transaction/event, select "No Journal entry required" In the first account field.) View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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