The Jones Company owns 80% of the stock of the Ace Company. On January 1, 2023, Jones purchased $20,000 (face value) of Ace's bonds in the open market. These bonds had an 8% cash interest rate. On the date of acquisition, the liability was recorded at $21,386 by the Ace Company, indicating an effective interest rate of 6%. Jones paid $18,732 for the bonds, indicating an effective interest rate of 10%.

Required:

Prepare journal entry B that would be prepared on the consolidating worksheet for the consolidation of the Jones and Ace Companies for the year ended December 31, 2023.