would you guide me on how to tackle such a problem

Note: there is information in the case that relates to Part II (i.e. the foreign subsidiary). You will not be using all the information for Part I. The Case Dandy Delicious Drinks (DDD) was incorporated in 2001 by Patrick and May VanPelt. The company is headquartered in Victoria, BC, where it manufactures fruit and vegetable juices that are distributed to retail stores across Canada. Awareness around the health benefits of juicing began to increase about 12 years ago, and since then, the company has grown significantly. The VanPelts have three adult children, Brayden, Britney and Ben. All three became actively involved in the business after they completed university degrees. In 2015, Patrick and May decided they wanted to slow down and turned the company's operations over to the children. Being much younger and more energetic, the children wanted to grow the company significantly and considered taking it public within the next 5-10 years. To that end, DDD has invested in other businesses to diversify the company's products and locations. Brayden is heading up the acquisitions, Britney is overseeing the finances, and Ben oversees the day-to-day operations in Victoria. The siblings are seeking financing through banks and private lenders to continue their expansion plans. All potential lenders want to see audited consolidated financial statements for the fiscal year ending September 30, 2021. Britney holds a Bachelor of Commerce degree in finance and knows that preparing consolidated statements is well beyond her abilities and those of their staff. As such, they have hired you to oversee the process and assist with the more complex accounting issues. Brayden and Ben do not understand why the consolidation process is so complex. To their way of thinking, all that is required is to add up the accounts from the company and its subsidiaries. Britney would like you to explain the purpose of consolidating and the reason(s) why the process can be more complex than simply adding up the accounts of all the companies. She believes it would be better for you to explain this to them since she often has difficulty communicating with her brothers in a way that they understand. The following is a summary of the various investments DDD holds. Bountiful Vitality Juices (BVJ] The siblings wanted to expand into the US market; however, receiving approval for new products from the Food and Drug Administration is a difficult and lengthy process. Early in 2020, Brayden found a successful company based in Seattle, Washington, called Bountiful Vitality Juices (BVJ). The company sells citrus-based fruit juices like lemonades, orange juices, etc. It was built from scratch by a couple, Kim and Kelly Farrell, who were looking to sell the company. They liked that DDD was family-owned and operated and agreed to the sale. On October 1, 2020, DDD purchased all the outstanding shares of BVJ for US$6,550,000. Kim and Kelly were heavily involved with the business and so to fill that gap, Ben and other managers from DDD have been travelling to California extensively to provide management oversight.BVJ had a significant operating line of credit, which camed a very high interest rate. Management of DDD was unable to successfully negotiate lower rates or to find new financing in the US at an acceptable rate. To improve profitability, on October 1, 2020, DDD borrowed funds and loaned them to BVJ, which used the money to repay the bank indebtedness that existed at acquisition. Financial statements and additional information about BVJ are included in Exhibit I. Liberty Wholesome Snacks (LWS) During 2017, the siblings purchased a company, Liberty Wholesome Snacks (LWS), which develops, produces, and sells healthy snack foods. The company currently sells a variety of energy and protein bars along with a variety of dried fruit and vegetable snacks. DDD purchased 80% of the shares of Liberty Wholesome Snacks (LWS) for $8,000,000 on October 1, 2017. An organic farmer owns the remaining shares. The farmer supplies LWS with a variety of fruits and vegetables used in the production of its products. Additional information related to LWS, along with the financial statements is provided in Exhibit II. RJ Packaging (RJP) DDD purchased a 30% interest in RJ Packaging (RJP) on September 30, 2018. RJP manufactures plastic and glass bottles, which DDD uses for many of its products. RJP is working on a process to use recycled materials in its plastic. DDD purchased an equity interest both to retain some influence over its supply of bottles but also because it wants to share in the growth potential of the new product RJP is working on. Information on the purchase and activities up to September 30, 2021 are contained in Exhibit III. You may assume the effective tax rate for all companies is 20%. Required: Prepare a package for the auditors. The package will be completed in two parts. Note: there is information in the case that relates to Part II (ie. the foreign subsidiary). You will not be using all the information for Part I.Part I - Due October 30, 2020 at 9pm. Based on the information provided, prepare: In Excel: 1. Analyze the investment in RJ Packaging and adjust the financial statements of DDD as needed. Hint: consider how RJP was recorded in the financial statements of DDD and then determine the correct treatment. Your analysis should break down the adjustment for prior years and the current year. 2. Once you have adjusted DDD's financial statements for the error in RJP , prepare the worksheet for consolidating DDD and Liberty Wholesome Snacks (LWS). You do not need to deal with the foreign subsidiary in this part. Your excel spreadsheet should include one column for the adjusted DDD amounts, one column for LWS, two columns for the eliminating entries, one column for referencing the journal entries, and one column (last column) for the consolidated totals.. Here are a few hints: In the consolidated column, ensure that the consolidated retained earnings in the statement of financial position is linked to the ending balance in your retained earnings statement. By doing this, it will allow you to make sure your SFP balances after each eliminating entry. b. Ensure that the consolidated net income in the retained earnings statement is linked to the net income attributable to the parent in the consolidated net income statement. C. Check to make sure you balance before you post any eliminating entries and after every entry. It will save you a lot of time. d. A sample template is provided but you will need to make some adjustments based on your work. e. Please note that the more organized your excel spreadsheet, the easier it is for the marker to navigate through your work. f. One possible set up in excel would be: Tab 1: Requirement 1 - RJP adjustment, Tab 2: the consolidated working paper, Tab 3 the eliminating entries, Tab 4: the supporting calculations and Tab 5 the properly formatted financial statements based on your final working papers. 3. Prepare the eliminating entries for the consolidation of LWS. Make sure to reference the journal entries in your working papers. 4. For the September 30, 2021 financial statements prepared above, prepare separate supporting calculations for. Consolidated Net Income attributable to the parent and to NCI, Consolidated Retained Earnings, and Non-controlling Interest on the statement of financial position. 5. A property formatted Consolidated Statement of Financial Position as at September 30, 2021 (comparative totals are not required) and a properly formatted Consolidated Income Statement and Statement of Retained Eamings for the year ending September 30, 2021 (comparative totals are not required).Exhibit III - RJ Packaging (RJP) On September 30, 2018, RJ Packaging issued 90,000 new common shares to DDD for $1,200,000. Prior to the issue, RJP had 210,000 common shares outstanding giving DDD a 30% interest. DDD also appoints 2 members to the 8-person Board of Directors and has been contributing business support to management of RJP as they research and develop their new bottles. DDD has been accounting for its investment in RJP using the cost method, however, to comply with potential financers requests for GAAP-compliant financial statements, you correctly believe they should be using the equity method. The purchase documents show that on September 30, 2018, RJP's shareholders' equity accounts were: Share capital $ 525,000 Retained earnings $1,789,000 All assets and liabilities were equal to the book values except for inventory which had a fair value $160,000 greater than book value and an intangible asset relating to the new plastic process with a fair value of $1,500,000 and a book value of $650,000. The intangible asset has a useful life of 25 years. DDD purchases inventory from RJP every year. A summary of purchases and amounts in ending inventory for the year is: 2020 - purchases $7,000,000 2020 - profit in ending inventory $56,000 2021 - purchases $7,380,000 2021 - profit in ending inventory $31,900 RJ Packaging Inc. Statement of Retained Earnings For the years ending September 30, 2021 and 2020 2021 2020 Opening retained earnings $ 3,608, 170 2,701,400 Net income 887,665 985,620 Dividends (71,000) (78,850) Ending retained earnings $ 4,424,835 3,608, 170 The company did not pay dividends in 2019