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Guide to Consolidation Journal Entries

Share Give access Share full text access. Share full text access. Please review our Terms and Conditions of Use and check box below to share full-text version of article. Summary This chapter discusses the whole subsequent consolidation process.


  • 3 Steps in Consolidation Procedures.
  • What’s the situation?;
  • The History Marker - Dangerous Games.
  • 3 Steps in Consolidation Procedures.
  • Understanding Consolidation and Equitization.
  • Example: How to Consolidate.

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Adding journal entries to a consolidation

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    The following figure shows the InFusion North America ledger set. The following table shows the debits and credits for the elimination entry in the InFusion North America elimination ledger.

    Journal Entry for Dividends

    Two additional intercompany transactions have taken place and must be eliminated when the four entities are all consolidated into the InFusion Corporate elimination ledger. The following elimination entries are based on the previous cross-ledger transactions. At different levels of the consolidation, certain intercompany payables and receivables balances must be eliminated.

    Eliminations are only required in the context of a consolidation where the trading parties are both included in a given consolidation.

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    Adding journal entries to a consolidation

    The following figure shows the InFusion Corporate ledger set. The figure also shows that transactions occurred between the following ledgers:. For the Eliminations column, the Total Assets row displays a negative amount of 52,, and the Total Liabilities row displays a positive amount of 52,