Gild owns 60% of Leeds. On January 2 2008. Gild purchased 50 percent of Leeds' bonds outstanding which were originally issued on January 1 2004, at 103. the total bond issue has a face value of $600,000, pays 10 percent interest semi-annually, and has a 10-year maturity. Any premium or discount is amortized using the effective interest method. Gild paid 298,000 for its investment in Leeds' bonds and intends to hold the bonds until maturity. Assume Gild accounts for its investment in Leeds stock using the fully adjusted equity method. Required

A) Present the worksheet elimination entries related to the debt necessary to prepare consolidated financial statements for 2008.

B) Present the worksheet elimination entries necessary to prepare consolidated financial statements for 2009.

Sprint LTE Done Sprint LTE 1 of 7 Done 5 of 7 30,000 29,442 1120OS 30,00020,415 61316,245 616,245 672-14,931 614,933 738 13,488 613,ABB /1/20o6 30,000 29,328 1/1/2007 30,000 29,296 /1/2007 3,00029,262 1/1/200s 30,00029,227 /1/200s30,00029,190 810 1/1/2009 30,000 29,152 7/1/2009 30,000 29,111 1/1/2010 30,000 29,069 7/1/2010 30,000 29,024 8,261 608,261 1/1/2011 30,00o 28,978 1,022 7,239 607,239 139 535 3620 0,13 /1/2011 30,000 28,929 -1,071 -6,168 606,168 7/1/2012 15,000 14,412 1/1/2012 30,000 28,878 -1,1225,047 605,047 7/1/2012 30,000 28,825 1,175 3,871 603,871 1/1/2013 30,000 28,769 -1,231 2,640 602,64 7/1/2013 30,000 28,710 -1,290 -1,350 601,35 /1/2013 15,000 14,38A 7/1/2013 15,000 :4.355-61s 1.936 2.523 1//2014 15,000 14,324 676 /1/2014 30,000 28,649 -1,351 I Sprint LTE 3:02 PM Done 2 of 7 Leeos bonds nancial entstor 2008 8 Sprint LTE Done Sprint LTE 1 of 7 Done 5 of 7 30,000 29,442 1120OS 30,00020,415 61316,245 616,245 672-14,931 614,933 738 13,488 613,ABB /1/20o6 30,000 29,328 1/1/2007 30,000 29,296 /1/2007 3,00029,262 1/1/200s 30,00029,227 /1/200s30,00029,190 810 1/1/2009 30,000 29,152 7/1/2009 30,000 29,111 1/1/2010 30,000 29,069 7/1/2010 30,000 29,024 8,261 608,261 1/1/2011 30,00o 28,978 1,022 7,239 607,239 139 535 3620 0,13 /1/2011 30,000 28,929 -1,071 -6,168 606,168 7/1/2012 15,000 14,412 1/1/2012 30,000 28,878 -1,1225,047 605,047 7/1/2012 30,000 28,825 1,175 3,871 603,871 1/1/2013 30,000 28,769 -1,231 2,640 602,64 7/1/2013 30,000 28,710 -1,290 -1,350 601,35 /1/2013 15,000 14,38A 7/1/2013 15,000 :4.355-61s 1.936 2.523 1//2014 15,000 14,324 676 /1/2014 30,000 28,649 -1,351 I Sprint LTE 3:02 PM Done 2 of 7 Leeos bonds nancial entstor 2008 8