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in this video were going to talk about how to create a consolidated balance sheet when one company acquires a hundred percent of another company so basically what were going to do is were going to create one balance sheet for the entire combined entity right so if we have two companies if we have a acquires B then were going to have this one entity a B were going to have this consolidated entity and were going to prepare a balance sheet for that consolidated in the however heres the catch we do not simply just add together all the balance sheet item totals from As previous balance sheet and from Bs previous balance sheet we dont just add them together its not that simple because that would result in double counting and Im going to explain why so basically I just want to give you a four step process to kind of outline them and Im going to show you with an actual example we call these adjusting and eliminating entries that we have to make so first when the parent lets say
