Please help, I am having a hard to understanding this comprehensive consolidation problem for advanced accounting. I have attached the forms I was given with the instructions.

Advanced Financial Accounting Comprehensive Consolidation Problem You are to complete the problem below (all requirements) in good form, showing all of your work! Deliverables: 1. A cover letter explaining to your Boss, ME, how the intercompany transfers were accounted for including the amount of income assigned to NCI; the differential and the assignment thereof; total NCI; the balance of the investment account, et cetera. Bear in mind that I am new to the firm and somewhat rusty on the consolidation of affiliate financial statements. Thus, you will need to explain this clearly, in layman's terms. 2. Spreadsheet calculation, in good form, showing your work for each requirement. 3. All of the work handed in should embody the spirit of professionalism; in other words, pretend that this really is your job and therefore, you will want to make sure that your deliverables are free from immaterial as well as material errors. Comprehensive Problem Topp Manufacturing Company acquired 90 percent of Bussman Corporation's outstanding common stock on December 31, 20X1, for $3,244,050. At that date, the fair value of the noncontrolling interest was $360,450, and Bussman reported common stock outstanding of $1,451,250, premium on common stock of $481,140, and retained earnings of $972,000 The book values and fair values of Bussman's assets and liabilities were equal, except for land, which was worth $319,140 more than its book value. On April 1, 20X2, Topp issued at par $540,000 of 8 percent bonds directly to Bussman; interest on the bonds is payable March 31 and September 30. On January 2, 20X3, Topp purchased all of Bussman's outstanding 10-year 14 percent bonds from an unrelated institutional investor at 97. The bonds orginally had been issued on January 2, 6 years ago, for 103. Interest on the bonds is payable December 31, and June 30. Since the date it was acquired by Topp Manufacturing, Bussman has sold inventory on account to Topp on a regular basis. The amount of such intercompany sales totaled $279,045 in 20X2 and $493,290 in 20X3, including a 42 percent gross profit. All inventory transferred in 20X2 had been sold by December 31, 20X2, except inventory which Topp paid $58,725 and did not resell until January 20X3. All 20X2 inventory transactions on account had been satisfied prior the end of the year. Inventory transferred in 20X3 had been resold at December 31, 20X3, except merchandise for which Topp had paid $112,050 An account balance of $63,450 remained unpaid on 20X3 inventory transactions. On January 1, 20X2, Bussman sold equipment to Topp for $303,750. Bussman had purchased the equipment for $500,850 on January 1, 20X0, and was depreciating it on a straight-line basis with a 10-year expected life and no anticipated salvage value The equipment's total expected life is unchanged as a result of the intercompany sale. As of December 31, 20X3, Bussman had declared but not yet paid its fourth-quarter dividend of $10,000. Both Topp and Bussman use straight-line depreciation and amortization, including the amortization of bond discount and premium. On December 31, 20X3, Topp's management evaluated the Bussman's asset fair value and determined the fair value of Bussman's net assets was $2,517,750 and the fair value of net assets excluding goodwill was $2,227,500. Any goodwill impairments should be shared proportionately between controlling and noncontrolling interests. Topp uses the basic equity method to account for its investment in Bussman. 1. Prepare all eliminating entries required to prepare a three-part consolidated working paper as of December 31, 20X3 At December 31, 20X3, trial balances for Topp and Bussman appeared as follows: Item Cash Current Receivables Inventory Investment in Bussman Stock Investment in Bussman Bonds Investment in Topp Bonds Land Building and Equipment Cost of Goods Sold Depreciation and Amortization Other Expenses Dividends Declared Accumulated Depreciation Current Payables Bonds Payable Premium on Bonds Payable Common Stock Premium on Common Stock Retained Earnings Sales Other Income Income from Subsidiary Total Topp Manufacturing Debit Credit 57,510 197,505 360,450 3,858,284 3,299,063 Bussman Corporation Debit Credit 386,573 332,822 535,275 540,000 4,077,027 2,722,073 1,147,682 400,275 414,923 492,750 2,515,725 4,407,750 4,963,316 360,450 1,138,928 168,750 2,219,171 140,940 540,000 1,303,223 339,529 3,375,000 30,375 1,451,250 481,140 1,022,000 2,799,225 247,658 2,276,370 2,207,291 4,085,100 8,581,140 319,144 958,574 21,237,729 21,327,729 11,049,399 11,049,399 wing all of your work! mpany transfers were ce of the investment somewhat , you will need to or each requirement. sionalism; in other words, o make sure that your s outstanding value of the outstanding gs of $972,000 ual, except for Bussman; interest Topp purchased stitutional go, for 103. ventory on account $279,045 in ry transferred in id $58,725 and had been iating it on a pany sale. quarter dividend ed the fair value of ding goodwill Advanced Financial Accounting Workpaper examples What is a working paper? Any thing that shows how you arrived at your work. What is included on a working paper? 1) Heading Heading includes enough information on it that if it to fall on the floor, someone could identify who it belonged to, what was being done. Heading example Advanced Financial Accounting (name) workpaper examples (information that would let reader know what you are working on) March 28, 20xx (date) 2) work that you are completing. What should be included in project (at a minimum) a Memo b Eliminating Entries c worksheet for each item you consider important d i.e. - inventory transaction - workpaper A e I.e. - equipment sale - workpaper B f Each worksheet should be title, replace the words Sheet 1, Sheet 2, etc with a title g double click on the word Sheet 1 and excel will allow you to type a description h Eliminating Journal Entries should be on a separate worksheet. Feel free to include eliminating journal entries on the workpaper they correspond, but you must also put the EJEs on the eliminating journal entry workpaper ived at your work. orking on) Company Name Eliminating Entries Date ELIMINATING ENTRIES WP JE Debit Credit EJE should be cross-referenced by working paper number EJE should be cross-referenced in Three-part worksheet by EJE number Example Income from Subsidiary Dividends Investment - Subsidiary A A 1 1 1 200 80 120 JE column: Eliminating Journal entry number. WP column - Workpaper cross-reference WP column alpha character in WP column respresent workpaper sheet number where the detail work is one would go to workpaper A to see how the value was computed ber where the detail work is located Company Name Consolidated Net Income Date Worpaper A Revenue Expense 1 Expense 2 Net Income Ownership % Income - Subsidiary Dividends Ownership % Dividends from Subisidary 500 150 100 250 80% 200 100 80% 80 Parent Company and Subsidiary Company Inventory transactions Parent Company inventory sale to Subsidiary Company Parent 70% 30% Revenue COGS GP 2012 150,000 105,000 45,000 2013 146,000 102,200 43,800 Subsidiary Inventory COGS GP 150,000 134,000 XX 146,000 127,000 XX 2012 2013 Eliminating Entry Investment in Bussm 90.00% NCI (Revenue) 10.00% Investment in Bu 90.00% NCI (COGS) 10.00% COGS 2012 Elimination Entry Revenue COGS Inventory 135,000 15,000 130,680 14,520 4,800 150,000 145,200 4,800 Cost of Goods Sold 2012 Actual - Parent Actual - Subsidiary Total COGS 105,000 134,000 239,000 COGS needed amount sold to 3rd parties 134,000 Amount purchased related party 150,000 % sold to 3rd parties 89.33% Original cost Ending Inventory 2012 105,000 Original amount sold 93,800 Adjustment needed 145,200 Actual - Subsidary 16,000 Ending Inventory Needed Amount not sold to 3rd parties 16,000 Amount purchased related party 150,000 % not sold to 3rd parties 10.67% Original cost Ending Inventory Adjustment needed 105,000 11,200 4,800 Ending Inventory 16,000 19,000