Enter consolidation working paper entries in the adjustments and eliminations columns in the following sequence:
 

1. Adjust for errors or omissions in the separate company financial statements.
2. Eliminate intercompany profits and losses.
3. Eliminate income and dividends from the subsidiary and adjust the investment in subsidiary to its beginning-of-the-period balance.
4. Eliminate reciprocal investment in subsidiary and subsidiary equity balances, enter beginning of the period minority interest, and enter amortized cost-book value differentials.
5. Amortize cost-book value differentials.
6. Eliminate other reciprocal balances (intercompany receivables and payables, for example).

See examples without goodwill and with goodwill.