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

The first part is a scenario covering the topic of consolidated financial statements. The second part is the preparation of a consolidated financial statement. You will submit both parts separately.

Part 1: Scenario – Written

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. You have been asked to provide assistance in explaining the consolidation process. The employee is asking you to respond to the following questions. Please provide full explanations and use examples to support your work.

Why must the eliminating entries be entered in the consolidation worksheet each time consolidated statements are prepared?
How is the beginning-of-period non controlling interest balance determined?
How is the end-of-period non controlling interest balance determined? Provide an example.
Which of the subsidiary’s account balances must always be eliminated? Why?
Which of the parent company’s account balances must always be eliminated? Why?

Your responses should be complete, cite appropriate examples, well written, and in conformity with the CSU-Global Guide to Writing and APA Requirements.

Part 2: Problem Solving – Journal

Using the data in the Option 1 Spreadsheet (linked at the bottom of the page), perform the accounting required for the acquisition of Little, Inc. by Big, Inc. Within the worksheet, you are to:

Select an accounting method (either cost or equity) and explain why you selected this method
Perform the required journal entries
Complete the consolidation worksheet
Prepare the consolidated balance sheet, income statement, and statement of equity in good form

Complete all work on the spreadsheet attached to this assignment; it will be your only deliverable.

Make sure to label your answers and provide support where needed. Your responses should be complete, well written, and in conformity with the CSU-Global Guide to Writing and APA Requirements