I am completely confused and if you could dumbifyit down for me that would be great. It is a question r/t preparing journal entries and consolidation entries relation to direct intercompany debt transfers.

The answers to the questions are already provided. I just need someone to dummy it down for me.

Wood Corporation owns 1 percent of Carter Company's voting shares. On January 1, 20X3, Carter sold bonds with a par value of $660,000 at 98. Wood purchased $440,000 par value of the bonds; the remainder was sold to nonaffiliates. The bonds mature in five years and pay an annual interest rate of 8 percent. Interest is paid semiannually on January 1 and July 1. Required: a. What amount of interest expense should be reported in the 20X4 consolidated income statement? (Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) ANSWER: Interest Expense: $18,406 (PLEASE EXPLAIN THIS IN GREAT DETAIL) b. Prepare the journal entries Wood recorded during 20X4 with regard to its investment in Carter bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your market rate of interest to 3 decimals. For example, . 0547523 should be rounded to 5.475%) TRANSACTION LIST: 1. Record the interest received on the bonds. 2.Record the interest received on the bonds. 3.Record the interest receivable on the bonds. 1. January 01: Cash $17,600 Dr and Interest Receivable $17,600 Cr 2. July 01: Cash $17,600 DR + Investment in Carter company bonds $789 DR and Interest income $18,423 CR 3. Dec. 31: Interest receivable $17,600 DR + Investment in Carter company bonds $823 DR and Interest income $18,423 CR c. Prepare all worksheet consolidation entries needed to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements for 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your market rate of interest to 3 decimals. For example, .0547523 should be rounded to 5.475%) TRANSACTION LIST: 1.Record the entry to eliminate the effects of the intercompany ownership in the bonds. 2.Record the entry to eliminate the intercompany interest receivables/payables. 1. Bonds Payable $440,000 DR + Interest Income $36,812 DR and Credit: Investment in carter company bonds $434,294, Bond discount $5,706, and Interest expense $36,812 Please explain this in detail a Profit & Loss Interest Income Interest Expenses Discount on Bond Payable 18,480 36,960 A.))))) INTEREST EXPENSE: a.)$18,4 explanantion that was given to me 52,800 +27,633.83) x 1/3 = $18,406 how they got both of the 27K's and 2,640 Interest Expense: $18,480 b Cash 18,480 Interest Receivable c 18,480 Cash Investment in Carter Company Interest Income 17,600 880 Interest Receivable Investment in Carter Company Interest Income 17,600 880 18,480 18,480 Consolidation entries, December 31, 20X4 Eliminate intercompany bond holdings: Bond Payable 440,000 Investment in Carter company 434,720 NCI in NA of Carter Interest Income Interest Expenses Discount on Bond Payable 5,280 36,960 35,200 1,760 A.))))) INTEREST EXPENSE: a.)$18,406 explanantion that was given to me was the following: +27,633.83) x 1/3 = $18,406 how they got both of the 27K's and the 1/3 cash Interest receivable The ($27,583.53 I do not know $17,600 ### This is what was given to me. How Cash Investment in Carter Company Interest Income 17,600 789 This is what was given to me. How did they get $789. 18,389 Interest Receivable Investment in Carter Company Interest Income 17,600 This is what was given to me. How did they get $17,600. 823 This is what was given to me. How did they get $823. 18,423 Transaction 1: Bonds Payable Interest income 440,000 36,812 Investment in Carter Co. Bonds Bond discount Interest expense Transaction 2: Interest payable interest receivable 17,600 This is what was given to me. How did they get $36,812. 434,294 This is what was given to me. How did they get $43 5,706 This is what was given to me. How did they get $5, 36,812 This is what was given to me. How did they get $36 This is what was given to me. How did they get $17 17,600 This is what was given to me. How did they get $17 at was given to me. How did they get $17,600. they get $789. d they get $17,600. they get $823. d they get $36,812. e. How did they get $434,294. e. How did they get $5,706. e. How did they get $36,812. e. How did they get $17,600. e. How did they get $17,600