Discount on Bonds Payable should actually be $1,800. Should it be $300,000 - $306,000 = -$6,000? Or, should it be $306,000 - $300,000 = $6,000? Can you all explain to me how do I get positive $1,800, or simply $1,800? Can you all explain to me the step by step work as how I should get $1,800, please? Can you type and/or write everything neatly and legibly, please? This way, I can actually read everything without having to ask you what you tried to write and/or type below. Thank you very much!

Week Four-Practice Problem 1 1 On-January 1, 20X7, Gild-Company acquired 60 percent of the outstanding common stock of Leeds Company at the book value of the shares acquired. On that date, the fair value of noncontrolling interest was equal to-40 percent of book value of Leeds. At the time of purchase, Leeds had common-stock-of $1,000,000 outstanding and retained earnings of $800,000.1 On December 31, 20X7, Gild purchased -50 percent of Leeds' bonds outstanding which were originally-issued on January 2, 20X4, -at-99. The total-bond-issue has a face value of $600,000, pays-10 percent interest annually, and has a 10-year maturity. Any premium or discount is- amortized on a-straight-line basis. Gild paid $306,000 for its investment in Leeds' bonds and intends to hold the bonds until maturity. I Income and dividends-for-Gild-and-Leeds for 20X7-and-20X8 are as follows: 1 Gildo Leeds Operating Incomea Dividendsa Net Incomea Dividendsa o 20x70 $1,600,000.0 $400,0000 $600,0000 $300,0000 a 20X80 -1,200,0000 400,0000 1,000,0000 -300,0000 1 Assume Gild accounts for its investment in-Leeds-stock using the fully adjusted equity method. I Required: A) Present the worksheet consolidation entries necessary to prepare consolidated financial statements for 20X7. B)-Present the worksheet-consolidation entries necessary to prepare consolidated financial- statements for 20X8.5 1 Answer: a. Book Value Calculations: NCI Gild Co. Common Retained ta +o 40% 60%a Stocka Earningsa book value'a 720,000 1,080,000% 1,000,000% a 800,0001 +Net Incomea 240,000% 360,000 600,000x --Dividendsa (120,000) (180,000) (300,000 $ Ending book valued 840,000% 1,260,000% 1,000,000 1,100,000x 88 OOO OOO a a 0 a 888 88 Deferred Loss Calculations:0 =a Totala (7,800) Gild-Co.'s: sharea *(4,680) +a NCI's sharea (3,120) Retirement Lossa JO (Step-4) 1 Leeds Company's Bonds: On December 31, 20X7, Gild-Corporation purchased 50 percent of Leeds' bonds outstanding which were originally-issued on January 2, 20X4, -at-99.1 On December 31, 20X7, Leeds Company issued-50% of their bonds with a total-(full)-face value (par value) of $600.000 of 10%, 10-year bonds to Gild Corporation., which was originally issued on January 2, 20X4.9 1 50% 50 100 =-0.501 $600,000 0.50 =-$300.000 On the maturity date. Leeds Company must repay $300.000, the principal, on the bonds to-Gild- Corporation. I VI must prepare an elimination joumal-entry and adjusting journal entry by recording a debit entry of $300,000 to-Bonds Payable. I 1 Gild paid $306,000 for its investment in Leeds' bonds and intends to hold the bonds until maturity. [Part of above word problem.] VI must prepare-an-elimination journal-entry-and-adjusting journal entry by recording a debit- entry of $306,000 to-Investment in Leeds Company Bonds. On December 31, 20X7, Gild purchased-50 percent of Leeds bonds outstanding which were: originally issued on January 2, 20X4, at-99. The total bond issue has a face value of $600.000,- pays 10 percent interest annually, and has a 10-year maturity. [Part-of above word problem.] =-20X7-20X41 =-3 years On the maturity date, Leeds-Company must repay $300,000, the principal, on the bonds to Gild- Corporation. I Gild paid-S306,000 for its investment-in-Leeds' bonds and intends to hold the bonds until- maturity. [Part-of above word problem.] =-$300,000-$306,000 =-$6,0009 - $6.000 10 -$6009 = $600-x-3 years = $1,8001 $1,800 is the Discount on Bonds Payable. I VI must prepare an elimination journal-entry and adjusting journal entry by recording a debit- entry of $1,800 to-Discount-on-Bonds Payable. On the maturity date, -Leeds Company must repay $300,000, the principal, on the bonds to Gild- Corporation. I Gild paid-S306,000 for its investment-in-Leeds' bonds and intends to hold the bonds until maturity. [Part-of above word problem.] 1 The debit-will-be-to-Discount-on-Bonds Payable-for-$1,800.1 = $306,000-$300,000 =-S6,000 = $6,000+ $1,8001 1 = $7,8001 V$7,800 is the Loss on-Bonds Payable. I VI must prepare an elimination journal entry and adjusting journal entry by recording-a-debit- entry-of-$7,800 to Loss-on Bonds Payable. Debita Credita 2 Datea Accounts and Explanationsa Post: refa Jan 1, 20X70 Bonds payable (L-) o Loss-on-Bonds payable (CL-) Discount on Bonds Payable (CL+) Investment in Leeds Company Bonds (A-)O Recorded elimination of bond holdings. $300,000 $7.8000 $1,8000 C $306,0000C