A new employee has been given responsibility for preparing the consolidated financial statements of Sample Company. After attempting to work alone for some time, the employee seeks assistance in gaining a better overall understanding of the way in which the consolidation process works.

Required for Initial Discussion Post:

You have been asked to provide assistance in explaining the consolidation process.

a. Why must the eliminating entries be entered in the consolidation worksheet each time consolidated statements are prepared?

b. How is the beginning-of-period non-controlling interest balance determined?

c. How is the end-of-period non-controlling interest balance determined?

d. Which of the subsidiarys account balances must always be eliminated?

e. Which of the parent companys account balances must always be eliminated?