Parent Corporation obtained 75% of Signature Company's voting stock on January 1, 201X, at underlying book value. Fair value of non-controlling interest was equal to 25% of book value of Signature at that date. Parent utilizes fully adjusted equity method in accounting for the ownership of Signature during 201X. On December 31, 201X, trial balances of 2 companies are as follows:
Complete given items, giving written responses and spreadsheet as needed:
i) Write all eliminating entries required as of December 31, 201X, to create consolidated financial statements and describe why these are eliminating entries.
ii) Create three-part consolidation worksheet.
iii) Create consolidated balance sheet, income statement and retained earnings statement for 201X.