Chapter 16 Investments

CHAPTER 15 INVESTMENTS CONTENT ANALYSIS OF EXERCISES AND PROBLEMS Time Range (minutes) 10-15 10-15 10-15 15-20 15-20 10-15 Number E15-1 E15-2 E15-3 E15-4 E15-5 E15-6 Content Trading Securities. (Easy) Journal entries. Unrealized holding gain. Balance sheet disclosure. Trading Securities. (Moderate) Journal entries. Income statement and balance sheet disclosures. Long-Term Investments. (Easy) Securities available for sale. Purchase and adjusting entries. Available-for-Sale Securities. (Easy) Journal entries. Compute unrealized increase/decrease balance. Available-for-Sale Securities. (Easy) Journal entries.Balance sheet disclosure. Held-to-Maturity Bond Investment. (Easy) Premium, straight-line amortization, journal entries. Error in recording interest at acquisition. Held-to-Maturity Bond Investment. (Easy) Discount, semiannual interest receipts, straight-line and effective interest methods of amortization, journal entries. Held-to-Maturity Bond Investment. (Moderate) Discount, semia nnual interest receipts, sale at gain. Effective interest method. Journal entries. Bond Investment. (Moderate) Discount, semiannual interest receipts, amortization schedule using effective interest method, journal entries.Bond Investment. (Moderate) Premium, semiannual interest receipts, amortization schedule using effective interest method, journal entries. Bond Investment. (Moderate) Premium, semiannual interest receipts, sale at loss. Effective interest method. Journal entries. Transfer Between Categories. (Easy) Reclassification from â€Å"held-to-maturity† to â€Å"available-for-sale securities. † Journal entries for interest and reclassification. E15-7 10-20 E15-8 10-20 E15-9 10-20 E15-10 10-20 E15-11 E15-12 15-20 10-15 15-1 Number E15-13 E15-14 E15-15 E15-16 E15-17 E15-18 E15-19 E15-20Content Impairment of Investment in Bonds. (Moderate) Journal entries for impairment. IFRS differences. Equity Method. (Easy) Stock investment. No goodwill. Journal entries, balanc e sheet presentation. Equity Method. (Easy) Stock investment. Journal entries. Income and depreciation. Dividends received. Equity Method. (Moderate) Stock investment. Earned income, received dividends. Journal entries. Convertible Bonds. (Easy) Purchase and conversion. Journal entries (including memorandum entry). Stock Dividends. (Easy) Journal entries for stock acquisition, stock dividend, and sale of a 1% interest.Life Insurance Policies. (Easy) Journal entries to record purchase, premium payments, change in cash surrender value. Sinking Fund. (Moderate) Purchased securities, collected dividends and interest, wrote up to fair value, sold securities, paid expenses, retired bond. Journal entries. (Appendix). Derivatives. (Moderate) Loan and derivative (interest rate swap: fair value hedge). Journal entries, including present value calculations. Financial statement disclosures (one year). Trading Securities. (Moderate) Journal entries. Income statement and balance sheet disclosures .Trading Securities. (Moderate) Journal entries. Income statement and balance sheet disclosures. Available-for-Sale Securities. (Moderate) Journal entries. Income statement and balance sheet disclosures (current and noncurrent). Effect of including unrealized holding gains and losses in income. Available-for-Sale Securities. (Moderate) Journal entries. Income statement and balance sheet (current and noncurrent) disclosures for two quarters. Temporary Available-for-Sale Investments. (Challenging) Journal entries. Income statement and balance sheet disclosures for four quarters.Investment in Available-for-Sale Bonds. (Challenging) Purchase at discount and at premium. Effective interest method of amortization. Sale. Journal entries. Income statement and balance sheet disclosures. Time Range (minutes) 15-25 10-20 10-15 10-20 15-20 5-15 10-15 10-15 E15-21 15-25 P15-1 P15-2 P15-3 15-20 15-20 20-30 P15-4 25-35 P15-5 30-45 P15-6 40-60 15-2 Number P15-7 Content Investments in Available-for-S ale Bonds and Equity Securities. (Challenging) Fair value method. Record various transactions. Income/loss determination. Determine carrying value of Temporary Investment account.Temporary Investments, Funds, Bank Reconciliation. (Challenging) Marketable securities and petty cash fund. Journal entries. Bank reconciliation. Bond Investment. (Challenging) Effective interest method. Premium. Journal entries to record purchase, interest receipt, partial sale, retirement. Bond Investment. (Challenging) Discount. Straight-line method, effective interest method. Amortization schedules. Journal entries. Bond Investment. (Moderate) Between interest dates. Discount. Straight-line method. Journal entries to record purchase, interest, retirement.Error in recording interest at acquisition. Bond Investment. (Challenging) Premium. Straight-line method, effective interest method. Amortization schedules. Journal entries. Bond Investment. (Challenging) Discount. Effective interest method. Partial sal e. Journal entries. Comparison of Fair Value and Equity Methods. (Challenging) Stock investments. Journal entries to record purchase, income, dividends, sale. Equity Method. (Challenging) Stock investments. Journal entries to record purchase, income, dividends. Equity Method. (Challenging) Stock investments. Journal entries.Goodwill computation. Year-end balance in investment account. Cash flow from operating activities under the indirect method. Equity Method. (Moderate) Stock investments. Journal entries to record purchase, income, dividends, sale. Change from Fair Value to Equity Method. (Challenging) Change from 10% to 40% ownership. Calculate dividend revenue, unrealized increase, investment income, and carrying value of investment for two years. Life Insurance Policies. (Moderate) Journal entries to record annual premiums, change in cash surrender value, policy redemption.Time Range (minutes) 30-45 P15-8 30-45 P15-9 30-45 P15-10 30-45 P15-11 20-30 P15-12 30-45 P15-13 P15-14 30 -40 30-45 P15-15 P15-16 20-30 30-40 P15-17 P15-18 30-40 25-40 P15-19 20-30 15-3 Number P15-20 Content (Appendix). Derivatives. (Moderate) Loan and derivative (interest rate swap: fair value hedge). Journal entries, including present value computations. Financial statement disclosures (two years). Time Range (minutes) 20-45 ANSWERS TO QUESTIONS Q15-1 Companies purchase securities of other corporations for a number of different reasons.One reason is to obtain additional income by investing excess cash. A second reason is to create long-term relationships with suppliers. A third reason is to obtain significant influence or control over related companies. The three categories of investments in debt and equity securities when there is no significant influence are trading securities, available-for-sale securities, and held-tomaturity debt securities. (a) A debt security represents a creditor relationship with another company. (b) An equity security represents an ownership interest in anot her company. c) The fair value is the amount at which a security could be exchanged in a current transaction between willing parties. Q15-4 When an investor owns between 20% and 50% of the voting common stock of the investee, the investor is presumed to have significant influence over the investee. When this occurs, the equity method is used to account for the investments. When the investor controls the investee by owning more than 50% of the voting common stock of the investee, then the investor issues consolidated financial statements which are the combined financial statements of both companies.Q15-5 To account for an investment in trading securities, the investment is initially recorded at cost. It is subsequently reported at fair value and the unrealized holding gains and losses are included in income. Any interest and dividend revenue, as well as realized gains and losses on sales, are likewise included in income. To account for an investment in available-for-sale securities, the investment is initially recorded at cost. It is subsequently reported at fair value, and the total unrealized holding gains and losses are reported as a component of accumulated other comprehensive income in stockholders' equity.The unrealized holding gains and losses for the period are reported in other comprehensive income. Interest and dividend revenue, as well as realized gains and losses on sales, are included in income. To account for an investment in held-to-maturity debt securities, the investment is initially recorded at cost and subsequently reported at amortized cost. Any unrealized holding gains and losses are not recorded, and interest revenue and gains and losses on sales are all included in income. 15-4 Q15-2 Q15-3 Q15-6 Q15-7 Q15-8An investment in available-for-sale securities is reported at fair value, as determined by the year-end selling prices on a securities exchange, and any changes in unrealized holding gains and losses are included in other comprehensive income. An adjusting entry is made at the end of each period to an Unrealized Increase/Decrease account and an Allowance account to reflect any change in fair value. The total unrealized increase/decrease is reported as accumulated other comprehensive income in stockholders' equity. Gains and losses on sales of securities are reported in the income statement.They are measured as the difference between the selling price and the cost (in the case of an equity security) or the amortized cost (in the case of a debt security). In addition, because the security is no longer in the portfolio of available-for-sale securities, the cumulative balance in the allowance account and the cumulative unrealized increase/decrease in the value of the security reported for that security at the previous balance sheet date must be â€Å"reversed† out of the accounts. Bonds carrying a stated interest rate above the prevailing yield for securities with a similar amount of risk are purchased at a pre mium.Premium amortizations result in an effective interest rate that is lower than the stated rate. Thus, interest revenue is lower. Bonds carrying a stated interest rate below the prevailing market rate for securities with a similar amount of risk are purchased at a discount. Discount amortizations result in an effective interest rate that is higher than the stated rate. Thus, interest revenue is higher. The two methods available to recognize interest revenue and account for premiums and discounts on investments in held-to-maturity bonds are the straight-line and effective interest methods.Under the straight-line method, an equal amount of premium or discount is amortized each period as an adjustment of interest revenue. Under the effective interest method, the market (yield) rate at the time of issuance is multiplied times the previous carrying value to determine the interest revenue. (a) When an investment in a debt security is transferred from the â€Å"held to maturity† category to the â€Å"available for sale† category, an unrealized holding gain or loss is computed by comparing the current fair value to the carrying value (amortized cost) of the bond and is reported as a component of other comprehensive income. b) When an investment in a debt security is transferred from the â€Å"available for sale† category to the â€Å"held for maturity† category, any unrealized holding gain or loss on the date of transfer continues to be reported as a component of other comprehensive income. The amount is amortized over the remaining life as an adjustment of the yield. Q15-9 Q15-10 Q15-11 Q15-12 Q15-13 Q15-14 Current asset Temporary investment (at cost) Plus: Allowance for change in value of investment Temporary investment (at market value) $XXXX XXX $XXXX 15-5 Q15-15 IFRS allow the reversal of an impairment loss.The reversal of this impairment loss is reported on the income statement. U. S. GAAP does not permit the reversal of an impairm ent loss. When an investor corporation owns a sufficiently large percentage of common stock, it is able to exert significant influence over the operating and financial policies of the investee corporation. In particular, the investor may be able to influence the investee's dividend policy. The dividends paid may be affected by the investor's cash needs, desire to raise its income, or by tax considerations. The equity method is used to account for this investment.It acknowledges the existence of a material economic relationship between the investor and the investee, is based upon the requirements of accrual accounting, and reflects the changes in the stockholders' equity of the investee company. When the equity method is used, an investment in common stock is initially recorded at its acquisition cost. However, in contrast to the fair value method, income is recorded by the investor as an increase to the Investment account and as investment income (based on the investor's percentage ownership) when it is reported by the investee.Dividends received (or receivable) are recorded as reductions in the carrying value of the Investment account whenever they are paid (or declared) by the investee. Furthermore, (1) since a material relationship is presumed, the effects of all intercompany items of revenue and expense are removed from the investor's accounts to avoid â€Å"double-counting,† and (2) if the acquisition cost is greater than the proportionate book value of the investee, additional depreciation may be recognized.It is necessary to eliminate intercompany revenues and expenses in the determination of investor net income, depreciate the proportionate share of any difference between the fair values and book values of investee depreciable assets implied by the acquisition of the investee shares, and treat the proportionate share of investee extraordinary items as investor extraordinary items (the proportionate share of investee results of discontinued opera tions is treated in a similar manner). The facts and ircumstances that preclude an investor who owns more than a 20% investment of an investee from using the equity method include: (1) the investee challenges the investor's ability to exercise significant influence through litigation or complaints to governmental regulatory authorities; (2) the investor and investee sign an agreement that the investor surrenders significant rights as a shareholder; (3) a small group of shareholders who operate the investee hold majority ownership and ignore the views of the investor; (4) the investor needs more financial information to apply the equity method than is available to the investee's other shareholders, and cannot obtain this information; (5) the investor cannot obtain representation on the investee's board of directors. a) When an investor acquires enough additional common stock during a year to change from the fair value method to the equity method, the investor is required to restate i ts investment in the investee by debiting the Investment account and crediting Retained Earnings for its previous percentage of investee earnings (less dividends) for the period from the original date of acquisition to the date that significant influence was obtained. It also eliminates any adjustments of the Allowance and Unrealized Increase/Decrease accounts made under the fair value method. Q15-16 Q15-17 Q15-18 Q15-19 15-6 Q15-19 (continued) (b) When an investor using the equity method sells a portion of the investment such that its portion of ownership falls below 20%, the use of the equity method is no longer appropriate and the investor no longer accrues its share of investee earnings. However, previously recorded income remains as a part of the carrying value of the Investment account. The investment is then accounted for under the fair value method.Q15-20 Under IFRS, Morgan and Parker could account for the joint venture arrangement using either the equity method or proportio nate consolidation. Under the equity method, Morgan and Parker would report their investment in the associate (equity method investee) at cost, adjusted for their proportionate share of the income less their proportionate share of any dividends paid by the investee. Under proportionate consolidation, Morgan and Parker would report consolidated financial statements for their proportionate share of the joint venture. (Consolidations are covered in a later accounting course. ) Under U. S. GAAP, the use of proportionate consolidation for joint venture arrangements is not allowed.Many insurance policies allow a portion of accumulated premiums to build up as a savings plan; and, if the policy is canceled, this savings plan, or cash surrender value of the policy, is returned to the company purchasing the life insurance policy. When a company is guaranteed a return equal to the amount of the cash surrender value of the policy, a part of each premium paid represents an investment. The portio n of the yearly premium that does not increase the cash surrender value of the policy is recorded as the amount of insurance expense, typically in the year-end adjustment of prepaid insurance. The amount of cash surrender value of life insurance policies is included as a long-term investment on the balance sheet. The increase each year is stated in the policy.A fund involves setting aside cash and other assets to accomplish specific objectives; whereas, an appropriation of retained earnings only reduces retained earnings available for dividends and does not provide any cash. Funds may be current, such as petty cash funds, or they may be long-term, such as those to retire long-term bonds or preferred stock, or those to purchase long-term assets. Q15-21 Q15-22 ANSWERS TO MULTIPLE CHOICE 1. 2. a b 3. 4. a c 5. 6. b b 7. 8. c a 9. 10. c c 15-7 SOLUTIONS TO REVIEW EXERCISES RE15-1 Investment in Available-For-Sale Securities* Interest Revenue ($12,000 x 0. 10 x 4/12) Cash *$12,000 + $6,00 0 RE15-2 Interest: Cash ($12,000 x 0. 0 x 6/12) Interest Revenue Dividends: Cash Dividend Revenue ($1 x 300) RE15-3 Unrealized Increase/Decrease in Value of Available-For-Sale Securities* Allowance for Change in Value of Investment *($12,300 – $12,000) + ($5,500 – $6,000) RE15-4 Cash Investment in Available-For-Sale Securities Gain on Sale of Available-For-Sale Securities Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-For-Sale Securities RE15-5 Investment in Held-To-Maturity Debt Securities Cash 215,443 215,443 6,400 6,000 400 200 600 18,000 400 18,400 600 300 300 200 500 500 15-8 RE15-6 Cash ($200,000 x 0. 12 x ? ) Investment in Held-To-Maturity Debt Securities Interest Revenue ($215,443 x 0. 10 x ? RE15-7 Investment in Trading Securities Investment in Available-For-Sale Securities Gain on Transfer of Securities Unrealized Increase/Decrease in Value of Available-For-Sale Securities Allowance for Change in Value of Invest ment RE15-8 Realized Loss on Decline in Value Investment in Held-To-Maturity Debt Securities RE15-9 Investment in Stock: Eagle Corporation (0. 30 x $120,000) Investment Income Investment Income Investment in Stock: Eagle Corporation [($620,000 – $600,000) x 0. 30] ? 8 Cash (0. 30 x $48,000) Investment in Stock: Eagle Corporation RE15-10 Note: No journal entry is required, only a memorandum entry is made for a stock dividend. Memo: Received 1,500 shares of Gamecock Company stock as a stock dividend. The cost of the shares is now $22 per share, computed as follows: ($99,000 ? 4,500). 36,000 750 750 14,400 14,400 15,520 15,520 12,500 9,400 3,100 12,000 1,228 10,772 2,300 2,300 36,000 15-9RE15-11 Cash (750 x $28) Investment in Available-For-Sale Securities (750 x $22) Gain on Sale of Investment [750 x ($28 – $22)] Unrealized Increase/Decrease in Value of Available-For-Sale Securities [750 x ($24 – $22)] Allowance for Change in Value of Investment RE15-12 Prepaid Ins urance Cash Insurance Expense Cash Surrender Value of Life Insurance Prepaid Insurance 12,000 10,500 1,500 12,000 21,000 16,500 4,500 1,500 1,500 12,000 15-10 SOLUTIONS TO EXERCISES E15-1 1. 2010 Dec. 10 21 31 Investment in Trading Securities Cash (500 x $76) Investment in Trading Securities Cash (800 x $34) Investment in Trading Securities Unrealized Gain on Increase in Value of Trading Securities 38,000 27,200 700* 700 12/31/10 Fair Value $39,500 26,400 $65,900 Cumulative Change in Fair Value $1,500 (800) $ 700 38,000 27,200 *Security 500 shares of C Company common stock 800 shares of D Company common stock Totals 2. 3. E15-2 1. 2010 Oct. Nov. 26 26 Cost $38,000 27,200 $65,200 700 unrealized gain on increase in value of trading securities; reported on 2010 income statement. Current assets: Temporary investment in trading securities (at fair value) $65,900 Investment in Trading Securities Cash (300 x $35) Cash (200 x $25) Loss on Sale of Trading Securities Investment in Trading Sec urities Investment in Trading Securities Cash (400 x $41) Investment in Trading Securities Unrealized Gain on Increase in Value of Trading Securities 10,500 5,000 200 16,400 500* 10,500 5,200 16,400 Dec. 10 31 500 15-11 E15-2 (continued) 1. (continued) *Security 300 shares of F Company common stock 400 shares of G Company common stock Totals 2. 3.E15-3 2010 During the year Investment in Available-for-Sale Securities Cash (900 x $18) Investment in Available-for-Sale Securities Cash (800 x $22) Dec. 31 Unrealized Increase/Decrease in Value of Available-for-Sale Securities Allowance for Change in Value of Investment 12/31/10 Fair Value $14,000 15,300 16,000 $45,300 Cost $10,500 16,400 $26,900 12/31/10 Fair Value $11,400 16,000 $27,400 Cumulative Change in Fair Value $ 900 (400) $ 500 $ (200) 500 $27,400 Loss on sale of trading securities Unrealized gain on increase in value of trading securities Current assets: Temporary investment in trading securities (at fair value) 16,200 16,200 17 ,600 17,600 1,500 1,500* Cumulative Change in Fair Value $(1,000) (900) (1,600) $(3,500) Security X Company common stock Y Company common stock Z Company common stock Totals Cost $15,000 16,200 17,600 $48,800 $1,500 credit adjustment = $3,500 required ending credit balance – $2,000 beginning credit balance 15-12 E15-3 (continued) Noncurrent assets: Investment in available-for-sale securities (at cost) Less: Allowance for change in value of investment Investment in available-for-sale securities (at fair value) Stockholders' equity: Accumulated Other Comprehensive Income: Unrealized decrease in value of available-for-sale securities E15-4 1. 2010 May 3 Investment in Available-for-Sale Securities Cash Cash Investment in Available-for-SaleSecurities Gain on Sale of Available-for-Sale Securities ($25,000 – $20,000) Unrealized Increase/Decrease in Value of Available-for-Sale Securities ($25,000 – $20,000) Allowance for Change in Value of Investment Cash Dividend Reven ue Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-for-Sale Securities $48,800 (3,500) $45,300 $ (3,500) 13,500 25,000 13,500 July 16 20,000 5,000 16 5,000 5,000 800 800 Dec. 31 31 5,000* 5,000 12/31/10 Fair Value $32,000 15,500 $47,500 Cumulative Change in Fair Value $2,000 2,000 $4,000 *Security B Company common stock C Company common stock Totals Cost $30,000 13,500 $43,500 15-13 E15-4 (continued) 1. (continued) $5,000 debit adjustment = $4,000 required ending debit balance + $5,000 credit adjustment (7/16/10) – $4,000 beginning debit balance 2. $4,000 credit balance [$4,000 beginning credit balance – $5,000 debit adjustment (7/16/10) + $5,000 ending credit adjustment] E15-5 1. 010 June 8 Investment in Available-for-Sale Securities Cash Cash Loss on Sale of Available-for-Sale Securities ($35,400 – $37,000) Investment in Available-for-Sale Securities Allowance for Change in Value of Investment Unrealized Increase/ Decrease in Value of Available-for-Sale Securities Cash Dividend Revenue Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-for-Sale Securities 50,000 35,400 1,600 50,000 Oct. 11 37,000 2,800 2,800 900 900 Oct. 11 Dec. 31 31 400* 400 12/31/10 Fair Value $43,900 49,600 $93,500 Cumulative Change in Fair Value $1,900 (400) $1,500 *Security N Company common stock O Company common stock Totals Cost $42,000 50,000 $92,000 15-14 E15-5 (continued) 1. continued) $400 debit adjustment = $1,500 required ending debit balance – [$1,700 beginning credit balance – $2,800 debit adjustment (10/11/10)] $92,000 1,500 $93,500 2. Noncurrent assets: Investment in available-for-sale securities (at cost) Plus: Allowance for change in value of investment Investment in available-for-sale securities (at fair value) Stockholders' equity: Accumulated Other Comprehensive Income: Unrealized increase in value of available-for-sale securities $ 1,500 E15-6 1 . 2010 Mar. 31 Investment in Held-to-Maturity Debt Securities Interest Revenue ($400,000 x 0. 12 x 3/12) Cash Cash ($400,000 x 0. 12 x 6/12) Interest Revenue [($400,000 x 0. 2 x 6/12) – $600] Investment in Held-to-Maturity Debt Securities [($413,800 $400,000) x 3/69] Cash Interest Revenue ($24,000 – $1,200) Investment in Held-to-Maturity Debt Securities ($13,800 x 6/69) 413,800 12,000 24,000 23,400 600 24,000 22,800 1,200 425,800 June 30 Dec. 31 2. If the company failed to separately record the interest at acquisition, the interest revenue for 2010 would be overstated and the value of the held-tomaturity debt securities would also be overstated. Therefore, excess amortization would be recognized over the remaining life of the bond, resulting in an understatement of interest revenue. 15-15 E15-7 1. 2010 Jan. 1 Investment in Held-to-Maturity Debt Securities Cash Cash ($500,000 x 0. 09 x 6/12) Investment in Held-to-Maturity Debt Securities [($500,000 $483,841. 79) ? ] Int erest Revenue Cash Investment in Held-to-Maturity Debt Securities Interest Revenue Investment in Held-to-Maturity Debt Securities Cash Cash ($500,000 x 0. 09 x 6/12) Investment in Held-to-Maturity Debt Securities ($24,192. 09 – $22,500) Interest Revenue ($483,841. 79 x 0. 10 x 6/12) Cash Investment in Held-to-Maturity Debt Securities Interest Revenue [($483,841. 79 + $1,692. 09) x 0. 10 x 6/12] 483,841. 79 22,500. 00 2,019. 78 22,500. 00 2,019. 78 483,841. 79 June 30 24,519. 78 Dec. 31 24,519. 78 2. 2010 Jan. 1 483,841. 79 22,500. 00 1,692. 09 483,841. 79 June 30 24,192. 09 22,500. 00 1,776. 69 24,276. 69 Dec. 31 15-16 E15-8 2009 Nov. 1 Investment in Held-to-Maturity Debt Securities Cash 673,618. 61 673,618. 1 REID CORPORATION Bond Investment Interest Revenue and Discount Amortization Schedule (Partial) Effective Interest Method Cash Debita $35,000 35,000 x 0. 10 x ? carrying value x 0. 11 x ? from footnote b – amount from footnote a carrying value + amount from footno te c Cash Investment in Held-to-Maturity Debt Securities Interest Revenue Cash Investment in Held-to-Maturity Debt Securities Interest Revenue Cash Investment in Held-to-Maturity Debt Securities (from schedule) Gain on Sale of Debt Securities 35,000. 00 2,049. 02 35,000. 00 2,161. 72 700,000. 00 677,829. 35 22,170. 65 37,161. 72 37,049. 02 Interest Revenue Creditb $37,049. 02 37,161. 2 Investment in Debt Securities Debitc $2,049. 02 2,161. 72 Carrying Value of Debt Securitiesd $673,618. 61 675,667. 63 677,829. 35 Date 11/01/09 04/30/10 10/31/10 a$700,000 bPrevious cAmount dPrevious 2010 Apr. 30 Oct. 31 Nov. 1 15-17 E15-9 1. 2010 Jan. 1 Investment in Held-to-Maturity Debt Securities Cash 190,165. 35 190,165. 35 2. RODGERS COMPANY Bond Investment Interest Revenue and Discount Amortization Schedule Effective Interest Method Cash Debita $10,000 10,000 10,000 10,000 10,000 10,000 Interest Revenue Creditb $11,409. 92 11,494. 52 11,584. 19 11,679. 24 11,779. 99 11,886. 79 Investment in Deb t Securities Debitc $1,409. 92 1,494. 52 1,584. 19 1,679. 24 1,779. 99 1,886. 9 Carrying Value of Debt Securitiesd $190,165. 35 191,575. 27 193,069. 79 194,653. 98 196,333. 22 198,113. 21 200,000. 00 Date 01/01/10 06/30/10 12/31/10 06/30/11 12/31/11 06/30/12 12/31/12 a$200,000 bPrevious cAmount dPrevious (face value) x 0. 10 (face rate of interest) x ? (year) carrying value x 0. 12 (effective interest rate) x ? (year) from footnote b – amount from footnote a carrying value + amount from footnote c Cash Investment in Held-to-Maturity Debt Securities Interest Revenue Cash Investment in Held-to-Maturity Debt Securities Interest Revenue 10,000. 00 1,409. 92 11,409. 92 3. 2010 June 30 2012 June 30 10,000. 00 1,779. 99 11,779. 99 15-18 E15-10 1. 2010 Jan. Investment in Held-to-Maturity Debt Securities Cash LYNCH COMPANY Bond Investment Interest Revenue and Premium Amortization Schedule Effective Interest Method Cash Debita $3,250 3,250 3,250 3,250 3,250 3,250 Interest Revenue Credi tb $3,073. 76 3,063. 19 3,051. 98 3,040. 10 3,027. 50 3,014. 12e Investment in Debt Securities Creditc $176. 24 186. 81 198. 02 209. 90 222. 50 235. 88 Carrying Value of Debt Securitiesd $51,229. 35 51,053. 11 50,866. 30 50,668. 28 50,458. 38 50,235. 88 50,000. 00 51,229. 35 51,229. 35 2. Date 01/01/10 06/30/10 12/31/10 06/30/11 12/31/11 06/30/12 12/31/12 a$50,000 (face value) x 0. 13 (face rate of interest) x ? (year) carrying value x 0. 12 (effective interest rate) x ? year) from footnote a – amount from footnote b carrying value – amount from footnote c due to $0. 03 rounding error Cash Investment in Held-to-Maturity Debt Securities Interest Revenue Cash Investment in Held-to-Maturity Debt Securities Interest Revenue 3,250. 00 176. 24 3,073. 76 3,250. 00 235. 88 3,014. 12 bPrevious cAmount dPrevious eDifference 3. 2010 June 30 2012 Dec. 31 15-19 E15-11 2010 Jan. 1 Investment in Held-to-Maturity Debt Securities Cash 307,493. 34 307,493. 34 GLOVER CORPORATION Bond Inv estment Interest Revenue and Premium Amortization Schedule (Partial) Effective Interest Method Cash Debita $18,000 18,000 Interest Revenue Creditb $16,912. 13 16,852. 30 Investment in Debt Securities Creditc $1,087. 87 1,147. 0 Carrying Value of Debt Securitiesd $307,493. 34 306,405. 47 305,257. 77 Date 01/01/10 06/30/10 12/31/10 a$300,000 bPrevious cAmount dPrevious (face value) x 0. 12 x ? year carrying value x 0. 11 x ? year from footnote a – amount from footnote b carrying value – amount from footnote c Cash Interest Revenue Investment in Held-to-Maturity Debt Securities Cash Interest Revenue Investment in Held-to-Maturity Debt Securities Cash Loss on Sale of Debt Securities Investment in Held-to-Maturity Debt Securities (from schedule) 18,000 2010 June 30 16,912. 13 1,087. 87 Dec. 31 18,000 16,852. 30 1,147. 70 2011 Jan. 1 300,000. 00 5,257. 77 305,257. 77 15-20 E15-12 2010 Dec. 1 Cash ($100,000 x 0. 08) Interest Revenue ($107,023. 56 x 0. 07) Investment in Held-t o-Maturity Debt Securities ($8,000 $7,491. 65) Investment in Available-for-Sale Securities Investment in Held-to-Maturity Debt Securities ($107,023. 56 – $508. 35) Unrealized Increase/Decrease in Value of Available-for-Sale Securities Allowance for Change in Value of Investment [$106,515. 21 ($100,000 x 1. 05)] 8,000 7,491. 65 508. 35 106,515. 21 106,515. 21 31 31 1,515. 21 1,515. 21 E15-13 1. June 1, 2010 Investment in Held-to-Maturity Debt Securities Cash 2011 Realized Loss on Decline in Value Investment in Held-to-Maturity Debt Securities 2012 No entry 2.Under IFRS, the company would make the same journal entries as in Requirement 1 for 2010 and 2011. In 2012, it would recognize the recovery of the impairment as follows: 2012 Investment in Held-to-Maturity Debt Securities Realized Loss Recovery on Increase in Value 3,000 10,000 10,000 4,000 4,000 3,000 15-21 E15-14 1. 2010 Jan. 1 Investment in Stock: Crowell Corporation Cash Cash ($50,000 x 0. 30) Investment in Stock: Crow ell Corporation Investment in Stock: Crowell Corporation Investment Income ($120,000 x 0. 30) Cash ($50,000 x 0. 30) Investment in Stock: Crowell Corporation Investment in Stock: Crowell Corporation Investment Income ($140,000 x 0. 30) 160,000 15,000 160,000 Mar. 31 5,000 36,000 36,000 15,000 15,000 42,000 42,000 June 30 Sept. 30 Dec. 31 2. Investment in Stock: Crowell Corporation Original investment $160,000 Share of 06/30 investment income 36,000 Share of 12/31 investment income 42,000 Balance, 12/31/10 $208,000 03/31 dividend 09/30 dividend $15,000 15,000 E15-15 2010 Jan. Dec. 1 31 31 31 Investment in Stock: North Company Cash Investment in Stock: North Company Investment Income ($45,000 x 0. 40) Investment Income ($15,000 ? 12 years) Investment in Stock: North Company Cash ($0. 70 x 8,000) Investment in Stock: North Company 15-22 144,000 18,000 1,250 5,600 144,000 18,000 1,250 5,600 E15-16 2010 Jan.During the year 1 Investment in Stock: Fink Company Cash (3,000 x $16) Investment in Stock: Fink Company Investment Income ($22,000 x 0. 30) Cash ($6,000 x 0. 30) Investment in Stock: Fink Company 31 Investment Income Investment in Stock: Fink Company a[($115,000 48,000 6,600 1,800 750a 48,000 6,600 1,800 750 Dec. – $90,000) x 0. 30] ? 10 years E15-17 2009 Jan. 1 Investment in Available-for-Sale Securities Cash 19,760 19,760 2011 July 1 Memorandum entry: On this date, the Taylor Corporation exchanged its investment in Kalanda Corporation 12% convertible bonds with a carrying value of $19,880a for 300 shares of Kalanda common stock with a fair value of $21,600.The cost per share is $66. 27 ($19,880 ? 300 shares). a$19,760 + (5 x $24*) *Amortization per period = $24 [($20,000 – $19,760) ? 10 periods] E15-18 2010 Mar. 2 Investment in Available-for-Sale Securities Cash 60,000 60,000 May 1 Memorandum entry: Received 1,000 (5,000 x 0. 20) additional shares of Foreman Company common stock as a stock dividend. The cost of the shares is now $10 per share as follows: $60,000 = $10 5,000 + (5,000 x 0. 20) 15-23 E15-18 (continued) 2011 Feb. 1 Cash (1,500 x $12) Investment in Available-for-Sale Securities (1,500 x $10) Gain on Sale of Investment in Available-for-Sale Securities 18,000 15,000 3,000 E15-19 2010 Jan. Dec. 31 Prepaid Insurance Cash Insurance Expense Cash Surrender Value of Life Insurance ($103,900 – $98,450) Prepaid Insurance Cash Gain on Death of Officer Cash Surrender Value of Life Insurance 13,300 7,850 5,450 13,300 13,300 2011 Jan. 1 50,000 43,520 6,480 E15-20 2010 Jan. Feb. July 1 3 30 Sinking Fund Cash Cash Sinking Fund Securities Sinking Fund Cash Sinking Fund Cash Loss on Sale of Sinking Fund Securities Sinking Fund Securities Sinking Fund Cash Sinking Fund Revenues Allowance for Change in Value of Sinking Fund Securities [$355,000 – ($400,000 – $48,000)] Unrealized Increase/Decrease in Value of Sinking Fund Securities 425,000 400,000 45,000 3,000 49,000 48,000 49,000 425,000 400,000 Dec. 31 31 3, 000 3,000 15-24 E15-20 (continued) 2011 Dec. 1 31 31 Sinking Fund Cash Sinking Fund Revenues Sinking Fund Expenses Sinking Fund Cash Sinking Fund Cash Sinking Fund Securities Gain on Sale of Sinking Fund Securities 40,000 4,500 360,000 40,000 4,500 352,000 8,000 31 Unrealized Increase/Decrease in Value of Sinking Fund Securities Allowance for Change in Value of Sinking Fund Securities 31 31 E15-21 Bonds Payable Sinking Fund Cash Cash Sinking Fund Cash 3,000 3,000 500,000 14,500 500,000 14,500 Note to Instructor: This interest rate swap is a fair value hedge. Original Bank Loan (not required) Cash Notes Payable Interest Payment on Loan: December 31, 2010 Interest Expense Cash a7% 3,000,000 3,000,000 210,000a 210,000 x $3 million Interest Rate Swap Payment: December 31, 2010 Cash Interest Expense b(7% 12,000b 12,000 – 6. 6%) x $3 million 15-25E15-21 (continued) Fair Values and Gains and Losses, December 31, 2010 Loss in Value of Derivative Liability from Interest Rate Swap cPre sent 53,497c 53,497 value = (8% – 7%) x $3,000,000 x 1. 783265 (n=2, i=0. 08 from Table 4 in the TVM Module) = $30,000 x 1. 783265 = $53,497 (rounded down to balance) A swap derivative loss and liability exist because the 8% current market rate is higher than the 7% fixed interest rate that Anglar receives on the derivative. Notes Payable Gain in Value of Debt dPresent 53,497d 53,497 value of principal = $3,000,000 x 0. 857339 (n=2, i=0. 08 from Table 3 in the TVM Module) = $2,572,017 = $210,000 x 1. 783265 (n=2, i=0. 08 from Table 4 in the TVM Module) = $374,486 = $2,572,017 + $374,486 = $2,946,503Present value of interest Total present value Decrease in value of debt = $3,000,000 – $2,946,503 = $53,497 The increase in interest rates decreases the value of note payable by the same amount as the increase in the value of the swap derivative liability. 15-26 E15-21 (continued) 2. Income Statement for Year Ending December 31, 2010 Other Items: Interest expense Loss in val ue of derivative Gain in value of debt e$210,000 $ (198,000)e (53,497) 53,497 – $12,000 Balance Sheet, December 31, 2010 Long-Term Liabilities: Notes payable Liability from interest rate swap f$3,000,000 – $53,497 $2,946,503f 53,497 $3,000,000 15-27 SOLUTIONS TO PROBLEMS P15-1 1. 2010 Nov. 19 29 Investment in Trading Securities Cash (200 x $86) Investment in Trading Securities Cash (300 x $63) Cash (100 x $89) Investment in Trading Securities (100 x $86) Gain on Sale of Trading Securities Investment in Trading Securities Cash (400 x $37) Cash (100 x $62) Loss on Sale of Trading Securities Investment in Trading Securities (100 x $63) Unrealized Loss on Decrease in Value of Trading Securities Investment in Trading Securities 17,200 18,900 8,900 8,600 300 14,800 6,200 100 6,300 200 14,800 17,200 18,900 Dec. 15 17 31 200* Cumulative Change in Fair Value $ 100 (400) 100 $(200) $ 300 (100) (200) $35,800 *Security 100 shares of M Company common stock 200 shares of P Company p referred stock 400 shares of T Company common stock Totals 2. Cost $ 8,600 12,600 14,800 $36,000 12/31/10 Fair Value $ 8,700 12,200 14,900 $35,800Gain on sale of trading securities Loss on sale of trading securities Unrealized loss on decrease in value of trading securities Current assets: Temporary investment in trading securities (at fair value) 3. 15-28 P15-2 1. 2010 July 2 14 Cash (100 x $1. 50) Dividend Revenue Cash (600 x $20) Loss on Sale of Trading Securities Investment in Trading Securities Investment in Trading Securities Cash (300 x $36) Cash (100 x $30) Investment in Trading Securities Gain on Sale of Trading Securities Investment in Trading Securities Cash (500 x $22) Unrealized Loss on Decrease in Value of Trading Securities Investment in Trading Securities 150 12,000 600 10,800 3,000 150 12,600 10,800 2,800 200 11,000 Aug. 9 24 Sept. 17 30 11,000 350 350* *Security 300 shares of P Company preferred stock 500 shares of U Company common stock Totals 2.Cost $10,800 11,00 0 $21,800 Cumulative 9/30/10 Change in Fair Value Fair Value $10,950 $ 150 10,500 (500) $21,450 $(350) $ 150 (600) 200 (350) $21,450 Dividend revenue Loss on sale of trading securities Gain on sale of trading securities Unrealized loss on decrease in value of trading securities Current assets: Temporary investment in trading securities (at fair value) 3. 15-29 P15-3 1. 2010 Mar. 31 Investment in Available-for-Sale Securities Interest Revenue ($10,000 x 0. 08 x 3/12) Cash Cash (200 x $30) Loss on Sale of Available-for-Sale Securities {200 x [$30 – ($23,100 ? 700)]} Investment in Available-for-Sale Securities [200 x ($23,100 ? 00)] Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-for-Sale Securities [200/700 x ($21,700 – $23,100)] Cash Interest Revenue ($10,000 x 0. 08 x 6/12) Cash (100 x $24) Investment in Available-for-Sale Securities [100 x ($8,400 ? 400)] Gain on Sale of Available-for-Sale Securities {100 x [$24 ($8,400 ? 400)]} Unrealized Increase/Decrease in Value of Available-for-Sale Securities [100/400 x ($9,400 – $8,400)] Allowance for Change in Value of Investment 10,000 200 10,200 May 17 6,000 600 6,600 400 17 400 400 400 2,400 2,100 300 June 30 Oct. 12 12 250 250 15-30 P15-3 (continued) 1. (continued) Dec. 31 Cash Interest Revenue ($10,000 x 0. 8 x 6/12) Dividend Revenue [(300 x $1) + (500 x $1. 50)] Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-for-Sale Securities 1,450 400 1,050 550* 550 12/31/10 Fair Value $ 7,500 15,500 10,100 $33,100 Cumulative Change in Fair Value $1,200 (1,000) 100 $ 300 31 *Security 300 shares of I Company common stock 500 shares of O Company common stock $10,000 face value of U Company 8% bonds Totals $550 debit adjustment = Cost $ 6,300 16,500 10,000 $32,800 $300 required ending debit balance + [$400 beginning credit balance – $400 debit adjustment (5/17/10) + $250 credit adjustment (10/12/10)] $ 600 1 ,050 (600) 300 2.Interest revenue Dividend revenue Loss on sale of available-for-sale securities Gain on sale of available-for-sale securities Current assets: Temporary investment in available-for-sale securities (at cost) Plus: Allowance for change in value of investment Temporary investment in available-for-sale securities (at fair value) Noncurrent assets: Investment in available-for-sale securities (at cost) Less: Allowance for change in value of investment Investment in available-for-sale securities (at fair value) 3. $6,300 1,200 $7,500 $26,500 (900) $25,600 15-31 P15-3 (continued) 3. (continued) Stockholders' equity: Accumulated Other Comprehensive Income: Unrealized increase in value of available-for-sale securities 4. Holly would include a gain of $700 [the change in the unrealized increase/decrease on the portfolio from $(400) to $300]. $ 300 P15-4 1. 2010 Jan. Cash (400 x $45) Investment in Available-for-Sale Securities (400 x $43) Gain on Sale of Available-for-Sale Secur ities [(400 x $45) – $17,200] Unrealized Increase/Decrease in Value of Available-for-Sale Securities Allowance for Change in Value of Investment (400 x $1) Investment in Available-for-Sale Securities Cash (700 x $45) Cash Dividend Revenue Unrealized Increase/Decrease in Value of Available-for-Sale Securities Allowance for Change in Value of Investment 18,000 17,200 800 6 400 400 31,500 2,500 Feb. 3 31,500 2,500 Mar. 31 31 2,300 2,300* 15-32 P15-4 (continued) 1. (continued) 3/31/10 Fair Value $ 29,500 18,000 28,000 30,100 $105,600 Cumulative Change in Fair Value $ (500) 800 -(1,400) $ (1,100) Cost *Security 500 shares of Keene Company common stock $ 30,000 400 shares of Sachs, Inc. common stock 17,200 400 shares of Bacon Company common stock 28,000 700 shares of Jackson Corp. common stock 31,500 Totals $106,700 $2,300 credit adjustment $1,100 required ending credit balance + [$1,600a beginning debit balance – $400 credit adjustment (1/6/10)] a[800 x ($44 – $43)] + [400 x ($72 – $70)] Apr. 14 Investment in Available-for-Sale Securities Cash (300 x $52) Cash (400 x $42) Loss on Sale of Available-for-Sale Securities [(400 x $42) – $17,200] Investment in Available-for-Sale Securities Unrealized Increase/Decrease in Value of Available-for-Sale Securities Allowance for Change in Value of Investment Cash Dividend Revenue Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-for-Sale Securities 15,600 16,800 400 17,200 15,600 May 11 11 800 800 2,800 2,800 June 30 30 2,600* 2,600 15-33 P15-4 (continued) 1. continued) 6/30/10 Fair Value $ 31,000 27,600 32,200 15,000 $105,800 Cumulative Change in Fair Value $ 1,000 (400) 700 (600) $ 700 Cost *Security 500 shares of Keene Company common stock $ 30,000 400 shares of Bacon Company common stock 28,000 700 shares of Jackson Corp. common stock 31,500 300 shares of Quinn Company common stock 15,600 Totals $105,100 $2,600 debit adjustment = $700 required ending debit balance + [$1,100 beginning credit balance + $800 credit adjustment (5/11/10)] $ 800 2,500 Second Quarter 2010 Loss on sale of securities $ (400) Dividend revenue 2,800 3/31/10 $47,200 300 $47,500 6/30/10 $30,000 1,000 $31,000 2. First Quarter 2010 Gain on sale of securities Dividend revenue 3.Assets Current assets: Temporary investment in available-for-sale securities (at cost) Plus: Allowance for change in value of investment Temporary investment in available-for-sale securities (at fair value) Noncurrent assets: Investment in available-for-sale securities (at cost) Less: Allowance for change in value of investment Investment in available-for-sale securities (at fair value) Stockholders' Equity Accumulated Other Comprehensive Income: Unrealized increase (decrease) in value of available-for-sale securities $59,500 (1,400) $58,100 $75,100 (300) $74,800 $ (1,100) $ 700 15-34 P15-5 1. 2010 Jan. Mar. 6 31 31 Cash Dividend Revenue Cash Dividend Revenue Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-for-Sale Securities 265 500 65 500 1,180* 1,180 Cumulative 3/31/10 Change in Fair Value Fair Value $13,470 $ (805) 13,765 1,115 18,940 1,490 15,500 (3,600) $61,675 $(1,800) *Security 400 shares of Turben Co. common stock 500 shares of Cook Corp. common stock 700 shares of Hill Corp. common stock 200 shares of Web Engines preferred stock Totals $1,180 debit adjustment June 30 30 Cost $14,275 12,650 17,450 19,100 $63,475 = $1,800 required ending credit balance – $2,980 ($63,475 – $60,495) beginning credit balance 1,075 1,075 Cash ($375 + $700) Dividend Revenue Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-for-Sale Securities 50* 450 6/30/10 Fair Value $13,300 14,125 19,300 15,400 $62,125 Cumulative Change in Fair Value $ (975) 1,475 1,850 (3,700) $(1,350) *Security 400 shares of Turben Co. common stock 500 shares of Cook Corp. common stock 700 shares of Hill Corp. common stock 200 shares of Web Engines preferred stock Totals Cost $14,275 12,650 17,450 19,100 $63,475 15-35 P15-5 (continued) 1. (continued) $450 debit adjustment = July 6 $1,350 required ending credit balance – $1,800 beginning credit balance 13,750 525 14,275 975 975 500 500 Cash Loss on Sale of Available-for-Sale Securities ($13,750 – $14,275) Investment in Available-for-Sale Securities Allowance for Change in Value ofInvestment Unrealized Increase/Decrease in Value of Available-for-Sale Securities Cash Dividend Revenue Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-for-Sale Securities 6 Sept. 29 30 805* 805 Cumulative 9/30/10 Change in Fair Value Fair Value $14,230 $ 1,580 19,500 2,050 15,900 (3,200) $49,630 $ 430 *Security 500 shares of Cook Corp. common stock 700 shares of Hill Corp. common stock 200 shares of Web Engines preferred stock Totals $805 debit adjustment = Cost $12,650 17,450 19,100 $49, 200 $430 required ending debit balance + [$1,350 beginning credit balance – $975 debit adjustment (7/6/10)] 19,780 17,450 2,330 Nov. 2 Cash Investment in Available-for-Sale Securities Gain on Sale of Available-for-Sale Securities ($19,780 – $17,450) 15-36 P15-5 (continued) 1. (continued) Nov. Unrealized Increase/Decrease in Value of Available-for-Sale Securities Allowance for Change in Value of Investment Cash Dividend Revenue Allowance for Increase/Decrease in Value of Available-for-Sale Securities Unrealized Change in Value of Investment 2,050 2,050 375 375 Dec. 30 31 550* 550 Cumulative 12/31/10 Change in Fair Value Fair Value $14,280 $ 1,630 16,400 (2,700) $30,680 $(1,070) *Security 500 shares of Cook Corp. common stock 200 shares of Web Engines preferred stock Totals $550 debit adjustment = Cost $12,650 19,100 $31,750 $1,070 required ending credit balance + [$430 beginning debit balance – $2,050 credit adjustment (11/2/10)] March 31 $765a –For Quarte r Ended June 30 Sept. 30 $1,075b $500 – 525 – – Dec. 31 $ 375 – 2,330 2. Dividend revenue Loss on sale of securities Gain on sale of securities a$265 b$375 + $500 + $700 15-37 P15-5 (continued) 3.Current assets: Temporary investment in available-for-sale securities (at cost) Plus (Less): Allowance for change in value of investment Temporary investment in available-for-sale securities (at fair value) March 31 Balance Sheet as of June 30 Sept. 30 Dec. 31 $63,475 (1,800) $61,675 $63,475 (1,350) $62,125 $49,200 430 $49,630 $31,750 (1,070) $30,680 Stockholders' equity: Accumulated Other Comprehensive Income: Unrealized increase(decrease) in value of available-forsale securities $ (1,800) $ (1,350) P15-6 1. 2010 Jan. 1 Investment in Available-for-Sale Securities Cash ($30,000 x 0. 97) Investment in Available-for-Sale Securities Cash ($40,000 x 1. 01) Cash ($30,000 x 0. 08 x 1/2) Investment in Available-for-Sale Securities Interest Revenue ($29,100 x 0. 0 x 1/2) Cash ($40,000 x 0. 10 x 1/2) Investment in Available-for-Sale Securities Interest Revenue ($40,400 x 0. 098 x 1/2) $ 430 $ (1,070) 29,100 29,100 1 40,400 1,200 255 40,400 June 30 1,455 2,000 20 1,980 30 15-38 P15-6 (continued) 1. (continued) June 30 Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-for-Sale Securities 225* 225 Cumulative Change in Fair Value $ (195) 420 $ 225 *Security $30,000 face value of Bradford Co. bonds $40,000 face value of Morris Co. bonds Totals a$29,100 b$40,400 c$30,000 d$40,000 Amortized 6/30/10 Cost Fair Value a $29,160c $29,355 b 40,800d 40,380 $69,960 $69,735 ost + $255 amortization of discount cost – $20 amortization of premium x 0. 972 x 1. 02 1 Investment in Available-for-Sale Securities Cash ($25,000 x 0. 92) Interest Receivable ($25,000 x 0. 11 x 5/12) Investment in Available-for-Sale Securities Interest Revenue ($23,000 x 0. 12 x 5/12) Cash [($25,000 x 0. 91) + $1,146] Loss on Sale of Availabl e-for-Sale Securities Investment in Available-for-Sale Securities Interest Receivable 23,000 July 23,000 Nov. 30 1,146 4 1,150 23,896 254* 23,004 1,146 30 *$23,004 carrying value ($23,000 cost + $4 amortization of discount) $22,750 proceeds (excluding interest) 15-39 P15-6 (continued) 1. (continued) Dec. 31 Cash ($30,000 x 0. 8 x 1/2) Investment in Available-for-Sale Securities Interest Revenue ($29,355 x 0. 10 x 1/2) Cash ($40,000 x 0. 10 x 1/2) Investment in Available-for-Sale Securities Interest Revenue ($40,380 x 0. 098 x 1/2) Cash ($40,000 x 1. 02) Investment in Available-for-Sale Securities ($40,380 – $21) Gain on Sale of Available-for-Sale Securities ($40,800 – $40,359) Unrealized Increase/Decrease in Value of Available-for-Sale Securities Allowance for Change in Value of Investment (from 6/30/10 schedule) Unrealized Increase/Decrease in Value of Available-for-Sale Securities Allowance for Change in Value of Investment 1,200 268 1,468 2,000 21 1,979 40,800 40,35 9 441 31 31 31 420 420 31 28 628* 12/31/10 Fair Value $28,800b $28,800 Cumulative Change in Fair Value $(823) $(823) *Security $30,000 face value of Bradford Co. bonds Totals a$29,355 b$30,000 Cost $29,623a $29,623 amortized cost (6/30/10) + $268 amortization of discount x 0. 96 = $823 required ending credit balance + [$225 beginning (6/30/10) debit balance – $420 credit adjustment (12/31/10)] $628 credit adjustment 15-40 P15-6 (continued) 2. Interest revenue Loss on sale of securities Gain on sale of securities a$1,455 b$1,150 For Semiannual Period Ended 12/31/10 6/30/10 a $4,597b $3,435 – (254) – 441 + $1,980 + $1,468 + $1,979 Balance Sheet As of 06/30/10 12/31/10 $69,753 225 $69,960 $29,623 (823) $28,800 3.Current assets: Temporary investment in available-for-sale securities (at amortized cost) Plus (Less): Allowance for change in value of investment Temporary investment in available-for-sale securities (at fair value) Stockholders' equity: Accumulated Other Comprehensive Income: Unrealized increase (decrease) in value of available-for-sale securities $225 $(823) P15-7 1. 2010 Feb. 3 Investment in Available-for-Sale Securities Cash (3,000 x $12) Investment in Available-for-Sale Securities Interest Revenue ($20,000 x 0. 12 x 3/12) Cash Cash Interest Revenue ($20,000 x 0. 12 x 6/12) Dividend Revenue (3,000 x $0. 25) 36,000 36,000 Apr. 1 20,000 600 1,950 1,200 750 20,600 June 30 15-41 P15-7 (continued) 1. (continued) Sept. 1 Investment in Available-for-Sale Securities Cash (4,000 x $22) Investment in Available-for-Sale Securities Interest Revenue ($30,000 x 0. 11 x 5/12) Cash Cash Interest Revenue ($30,000 x 0. 11 x 6/12) Cash ($30,000 x 1. 1) Investment in Available-for-Sale Securities Gain on Sale of Available-for-Sale Securities ($30,300 – $30,000) Cash Dividend Revenue (3,000 x $0. 25) Cash Loss on Sale of Available-for-Sale Securities ($35,300 – $36,000) Investment in Available-for-Sale Securities Cash Interest Revenue ( $20,000 x 0. 12 x 6/12) Allowance for Change in Value of Investment Unrealized Increase/Decrease in Value of Available-for-Sale Securities 88,000 88,000 Nov. 1 30,000 1,375 1,650 1,650 30,300 30,000 300 750 35,300 700 36,000 1,200 1,200 4,200* 4,200 750 31,375 Dec. 1 1 30 30 31 31 15-42 P15-7 (continued) 1. (continued) Cost *Security $20,000 face value of Solomon Co. bonds $ 20,000 4,000 shares of Woodman Corp. ommon stock 88,000 Totals $108,000 a$20,000 b4,000 Cumulative 12/31/10 Change in Fair Value Fair Value $ 200 $ 20,200a 92,000b 4,000 $112,200 $4,200 x 1. 01 x $23 $2,075 (-$600+$1,200-$1,375+$1,650+$1,200) 1,500 ($750+$750) 300 (700) 2. Interest revenue Dividend revenue Gain on sale of securities Loss on sale of securities 3. Current assets: Temporary investment in available-for-sale securities (at cost) Plus: Allowance for change in value of investment Temporary investment in available-for-sale securities (at fair value) $108,000 4,200 $112,200 P15-8 Note to Instructor: This problem contains petty cash journal entries and a bank reconciliation, previously covered in Chapter 7. 1. 2010 Jan. Investment in Available-for-Sale Securities [(150 x $20) + (200 x $30) + (100 x $25)] Cash Investment in Available-for-Sale Securities ($20,000 + $12,000) Interest Revenue [($20,000 x 0. 12 x 5/12) + ($12,000 x 0. 10 x 4/12)] Cash Petty Cash Cash 11,500 11,500 Feb. 1 32,000 1,400 500 33,400 500 1 15-43 P15-8 (continued) 1. (continued) Feb. 28 Cash Interest Revenue [$20,000 x 0. 12 x 6/12] Postage Expense Office Supplies Expense Transportation Expense Miscellaneous Expense Cash Cash Short and Over Cash a$125. 50 1,200 1,200 110. 00 170. 65 45. 00 43. 50 5. 35a 28 369. 15 5. 35 28 – ($500. 00 – $369. 15) 2,100 200 1,500 800 Mar. 31 Cash ($1,500 + $600) Interest Receivable ($20,000 x 0. 12 x 1/12; A Co. bonds) Dividend Revenue Interest Revenue [($12,000 x 0. 0 x 6/12) + ($20,000 x 0. 12 x 1/12)] Unrealized Increase/Decrease in Value of Available-for-Sale S ecurities Allowance for Change in Value of Investment b$42,600 31 900 900b – ($11,500 + $32,000) 140. 00 75. 30 54. 20 31 Postage Expense Office Supplies Expense Miscellaneous Expense Cash 269. 50 15-44 P15-8 2. (continued) PAYNE CORPORATION Bank Reconciliation March 31, 2010 Balance per bank statement Add: Deposits in transit Deduct: Outstanding checks Adjusted cash balance Balance per company records Add: Note collected by bank Interest on note Deduct: Bank service charge NSF check returned Adjusted cash balance 3. 2010 Mar. 31 Cash Notes Receivable Interest Revenue

Barriers Faced by Human Service Workers Essay

â€Å"Only a life lived for others is a life worthwhile. † – Albert Einstein Human service workers act as a liaison between clients in need and the agencies clients seek to obtain help from, and while human service workers strive to provide services in an adequate and timely manner this is not always possible. Human service workers are human therefore there can be a large margin of error. All human service agencies are subject to barriers that prevent perfect service from being rendered. While certain barriers do exist in the human service field improvements can be made that can lead to greater service. In today’s society technology is dominating the workforce causing former work methods to become obsolete. While technology is constantly changing the changes made are often for the better, allowing companies to thrive and overcome existing barriers once faced. Technology not only benefits â€Å"business† companies, but also greatly improves the barriers faced by human service workers. One potential barrier that human service agencies can face is falsification on company records. Falsification of records can prove fatal, especially in Child or Elder Protection cases. While falsification of records may not be the human service workers intention it can indeed be committed when time restraints prevent case workers from visiting their clients in a given time frame. In August 2006 lack of time and falsification of records proved fatal for 14 year old Danieal Kelley of Philadelphia, Pa. Danieal Kelley a then 14 year old cerebral palsy victim died from neglect at the hands of her own mother. The nightmare of forced starvation and infection that killed Danieal while under the protection of the city’s human service agency is documented in a 258 page grand jury report that charges nine people, her parents, four social workers, and three family friends- in her ghastly death† (CBS3,2008). In the case of Danieal Kelley â€Å"the department of Human Services received at least five reports of Danieal being mistreated between 2003 and 2005†(CBS3, 2008), and while social workers were assigned to Daniela’s case, none appeared to follow through. According to CBS3 news it’s suspected that after Danieal’s death Mickal Kamuvaka the company director of the agency in charge of Daniela’s case held a â€Å"forgery fest† in her office where she had employees â€Å"concoct almost a year’s worth of false progress reports†(CBS3, 2008). The fact that no one took time to protect Danieal sheds light on the terrible fact that â€Å"some† social workers falsify documents to protect themselves. In order to prevent future case like Danieal’s its imperative that a system be in place to prevent social workers from simply doctoring records when it’s convenient for them. A method that could be used to track the whereabouts of said social workers could be a G. P. S. Agencies could provide social workers who are required to make home visits with cell phones implanted with G. P. S. systems. The tracking system could be used while the social workers are on the clock to ensure that home visits are indeed being made within the required time frame. This tracking system could prevent workers from falsifying documentation because their whereabouts would be known ahead of time. An online G. P. S. racking system called World Tracker Web GPS (webgpstrack), which allows devices to be tracked through internet access. According to Mobile GPs online, â€Å"Web GPS Track is a self contained hardware and software package that allows a user to track his assets from anywhere through an internet connected PC† (Mobile GPs, 2008). The Web GPS Tracker works by using the world tracker and a SIM card from a local GSM wireless network carrier. Once the SIM card is inserted into a cell phone, GPS tracking can begin. One’s location can then be accessed by using platforms such as Google maps. This small device can be a very helpful tool in the human service field when it’s necessary to obtain truthful information about a workers true whereabouts. Web GPS Track can become expensive depending on the number of units needed for a given agency. The cost includes a onetime purchase fee of the World Tracker unit which is $350 each. An additional on time subscription fee of 99. 89 per unit is needed to activate the account. Additional fees include a monthly service fee of 19. 98 per unit, a onetime SIM card fee ranging between $25 and $ 50, and any SMS service fee charged by a local service provider. While the cost of GPS tracking can be expensive, it can prove beneficial when proper records are needed, and it may save an agency from facing a large lawsuit because of false documentation, it could also prevent another case of Danieal Kelley. Another potential barrier faced by human service agencies is Intellectual Property Theft. â€Å"Intellectual property is anything from names, images, symbols, and designs used in commerce, intellectual property is considered a valuable asset and most organizations have protected their intellectual property from infringement by others† (Hefter,1995). Intellectual property theft becomes possible when secure information is left unattended and within reach of possible culprits. Some ways that intellectual property may get out is through emails sent to incorrect recipients, when confidential information is left in common areas, or left laying on printers or scanners. Information can also be lost when employees speak on their cell phones in public areas. Intellectual property theft in the human service field can wreak havoc on clients. Personal information can fall into the wrong hands whether it in a domestic violence shelter or and employment shelter. While intellectual property theft is very serious solutions exist that can help combat Intellectual Property Theft. Aside from agencies limiting access to non business related websites to help prevent being hacked, a program called Symantec Data Loss Prevention which is used by leading technological companies can also be used as a safety measure. â€Å"Symantec Data Loss Prevention protects companies from malicious employee behavior, pirating, or accidental leaks that expose confidential information† (Symantec Security, 2008). Symantec Data Loss Prevention works by â€Å"1. Discovery; the software finds confidential data where ever it’s stored, creates an inventory of sensitive, and automatically manages data clean up. 2. Monitor; SDLP helps a company understand how confidential information is being used whether the user is on or off the cooperate network, and gain enterprise visibility. 3. Protect; SDLP helps companies gain visibility into policy violations to proactively secure data and preventing confidential data from leaving an organization.   4.  Manage; SDLP helps companies define universal policies across an enterprise, remediate and report incidents, and detect content accurately within one unified platform† (Symantec Security, 2008). A program offered by Symantec is Norton Internet Security which performs the necessary features above. The cost of the Norton software is fairly inexpensive costing 69. 99. This cost allows a computer to be fully protected for a year before needing to renew the software subscription. Norton is inexpensive software which will help rotect company files and serves as a valuable investment, whether in a corperate office or a human service agency. Another potential barrier faced by human service agencies is the loss of data. As technology becomes more prevalent in the workforce more records are being transferred from paper to computers. As with any form of technology the possibility of records being lost is very real if computers crash or other technological difficulties arise. The best way to protect data is to always backup files. A number of technological software exist that can do this. For agencies using windows, â€Å"The windows server backup software can be used to automatically and continuously backup a number of devices like NAS,CD/DVD, hard drive and tapes† (Computer Customizing, 2008). One form of windows backup software is Acronis True Image which creates a replica of the disk image of the windows server. According to Computer Customizing this backup software helps aid in server disaster recovery by creating backups on a number of media, SAN volumes, and NAS. This software also restores huge databases and all the individual files with instant bare metal restore (Computer Customizing, 2008). This software will help protect all important files preventing valuable files from being lost. Human service workers and human service agencies are bound to face barriers on any given day and while this is an unavoidable truth there are solutions that can allow for a faster paced, safer, and more ethical workplace. While the vast majority of services rendered by human service agencies are completed by hard working human beings, technology is paving the road for a more effective work environment as long as agencies properly utilize the technological tools that are becoming available at a lightning fast rate. Technology is the way of the future and needs to be embraced in order to keep up with the times and not get lost in an overflow of paperwork which distracts from the true purpose of a human service worker which is to be an advocate for those in need.

Human Growth & Development Reflection: Procastination Essay

Being a student in high school, the problem with procrastination is most definitely a very common occurrence. To try to curb this horrible problem you will need to find a study method that works for you and sparks an interest in the material you will be studying. In my case, I have never seemed to have found a effective study method that worked for me and one that had sparked an interest in whatever I may have been studying for. For many years I had studied for tests employing study methods such as highlighting the text, simply reading the material covered by the test, reading all of the information at one time, and the most used among high school and college student but definitely the least effective one, cramming that didn’t do much good and resulted in poor test scores. After learning about how memory works in Human Growth and Development, I was very curious to see how well these new so called â€Å"golden† study methods would work for me. I quickly tested out these new study methods for a test that I had been procrastinating for. To my surprise, the Method of Loci which at first had seemed quite silly turned out to work perfectly and helped me achieve a perfect score of one hundred on my test compared to the previous test of the same type which I had received a score of eighty-five. For me to find my study method that worked for me during my sophomore year of high school was a bit late. Even though it may have been a bit late, I definitely believe that my terrible problem with procrastination on important tests may have thankfully found a solution that lasts a great deal of time and hopefully will help me in the future to pursue a career in medicine.

How could a company reduce it's high of absenteeism Research Proposal - 1

How could a company reduce it's high of absenteeism - Research Proposal Example Notwithstanding its size, it has been experiencing absenteeism problems. The company was founded in 1930 as American Airways; however the first flights commenced in 1934. American Airlines operates out of four hubs in the USA- one each at JFK, Miami, O’Hare and Los Angeles Airports, while its headquarters remains at Dallas Forth Worth Airport. American Airlines has a fleet of 621 aircraft as of December 2010. Tom Horton is the President and Gerard Arpey is the current CEO. American Airlines is one of the most reputed airlines in the USA. However due to its sheer size, it has had its share of problems. Among these, absenteeism has been reported a key factor affecting its service delivery. Through this project, I seek not only to find the reasons behind this unfortunate circumstance; I also attempt to find the reasons and to try to solve the problem by applying the theories of management and organizational behavior towards this end. I hope I have impressed upon at least some employees the value of honest and true service and the need to cut down absenteeism to the very minimum. 5. What do you think that American Airlines needs to do in order to motivate you and other employees to work more honestly and as a team to improve service levels, efficiency and effectiveness at American Airlines? (Thank you for your support and assistance. I assure you that this information will be kept strictly confidential, and will not be shared with anyone except my class teacher and fellow students for the purpose of my assignment). In addition to talking to people, making observations can be a good source of primary research on a problem. Since I was looking at the causes of absenteeism and wanted to correct the situation, I chose to relax in front of the American Airlines Customer Service Counter one afternoon and observe service attitudes in action. 3. Morale and work attitude determined through demeanor, conduct with passengers, willing to hear them out

A Rationale for Integrating Arts in Education Essay

A Rationale for Integrating Arts in Education - Essay Example What makes this approach simultaneously traditional and revolutionary in nature is that it proposes a wider sense of self-development and expression of being in human nature and the conception of self than is traditionally permitted in institutions focused on discipline and social control of large and diverse masses of students who must be managed efficiently and coerced into behavioral patterns. The possibility exists that the â€Å"discipline and punish† mentality operating overtly and subtly in academic institutions publicly and privately may be more related to social hierarchies, engrained power structures, systems of status, and the needs of capitalist production facilities than a genuine valuing of the human being as a unique and free individual, as the work of the French Philosopher Michel Foucault suggested. If in recognizing this deeply engrained structural bias, educators feel the need for systemic reform in education institutions, one possible methodology to impleme nt on a theoretical basis in managing educational institutions is an Integrated Arts approach. This methodology relates also to extensive research in Humanistic and Integral psychology, which additionally posit a fundamental paradigm change in education that represents a broader and multi-dimensional conception of the human being and the respect for the essential freedom of human life found in Natural Law and Human Rights theories. Critical to the success of the Integral Arts approach is the cultivation of creativity in all aspects of life, problem solving, learning, and self-development. Encouraging Learning Styles and Multiple Perspectives Public institutions in a democratic and egalitarian society should be tasked with protecting the interests of all of society’s members equally. In education, this should fundamentally apply to serving the needs of all students equally. It can be further argued that the ranking, grading, evaluation of students, and distribution of grades o perates on a standardized model that contains both cultural biases and discrimination against students who have different learning styles or forms of self-expression. Integrated Arts methodologies in education management can theoretically eradicate these engrained structural biases by eliminating or changing the way students are tested, â€Å"valued†, promoted, etc. As Gallas (1991) wrote in â€Å"Arts as epistemology: Enabling children to know what they know,† â€Å"they [the students} will show you what they know and how they learn best, and often that is not the teachers way.† (Gallas, 1991) In forcing the students to conform on a fundamental level to the authority and rules of the class, a type of bias in education may arise that teachers and educators should address through education theory. An Integral Arts approach is designed to address this bias by de-emphasizing the authority structures that are presented in traditional models of classroom

4.Review the main features of TWO welfare reforms passed by the post Essay

4.Review the main features of TWO welfare reforms passed by the post war Labour government 1946-1951 - Essay Example There were two main reforms that are still impacting the United Kingdom are the National Health Service and the National Insurance Act, both of 1946. The National Health Service (NHS) was a major achievement not only for the Labour government but also for the nation as a whole. This program allowed free medical treatment for everyone, not just the 21 million people who were covered by the National Health Insurance, the predecessor to the NHS. (Leichter 1979, p. 158) This program which was finally rolled out in 1948 was at first vehemently opposed by the majority of doctors who believed that this form of health coverage would end up ruining medical practices. The doctors who were originally opposed soon realized that their fears were unjustified and joined the ranks of those assisting the needy. The other major reform was the National Insurance Act which came into effect soon after World War II was officially over combined three already established insurance schemes into one. These three covered unemployment insurance, national health insurance, and the contributory pension. When the Act was put into place, it became necessary for all of the adult population to carry insurance, which was subsidized by the government and employers. (Barr 1993, p. 3) This ensured that all those of working age could receive care, therefore enabling more productivity. While not without issue, these two acts really changed the focus of how the United Kingdom saw assistance, and how individuals received it. Due to the recent conflict, the nation had already established a family allowance which in combination with the National Insurance Act and the National Health Service covered close to 100% of the population which was intended by the Labour Government as well as the driving force for the National Health Services, Aneurin Bevan. (Rintala 2003, p. 3) Although many liked the care, it was

Trinidad and Tobabgo independence day Research Paper

Trinidad and Tobabgo independence day - Research Paper Example He spent a lot of his early life living with his grandparents. He was brought up in a humble background of a middle-class family. His dream job was being a fireman, but he ended up firing racism instead. The activities that his father was involved in inspired him to being an activist for equality rights. His father campaigned for equal wages for the blacks and the whites. His father and grandfather were very religious, and they preached the social gospel always. Being in such a family, martin believed in equality of all people, and it inspired him to fighting for the rights of the blacks. He became a pastor of Ebenezer church where he served for over 4 4 years. Besides starting a religious career, he was more concerned with real life issues such as segregation and poverty. He graduated with a sociology degree at the age of 19. He continued his studies and achieved a doctorate in theology in 1951. He believed in the philosophy of Mahatma Gandhi on freedom and non-violence and he used it to gain the rights of the oppressed African Americans. He got married to Coretta, had four children together, before dying after only 15 years of marriage (King and Carson 123). Martin is remembered for the famous Montgomery bus boycott which occurred in 1954. Although he did not have a mission to fight for civil rights on Montgomery, the arrest for Rosa parks for refusing to relinquish her bus seat for a white man proved his feeling. He and other clergymen organized a bus boycott until the desegregation in the transit system ended. He organized for distributions of leaflets asking African Americans not to ride in the buses on December 5th. His call was heard, and more than 20000 blacks did not ride the buses on December 5, 1955 (King, and Ayres 29). After the success of this boycott, king called for a long-term bus boycott that lasted for 381 days. This boycott was the beginning of martin’s fight for

Animals are Friends, not Scientific Experiments Assignment

Animals are Friends, not Scientific Experiments - Assignment Example They are funded by big companies and sometimes by research agencies. These experiments have however, more often than not, been counter-productive as they fail to understand the basic fact that humans and animals have very different bodies. Drugs may thus not be safe for humans while they are safe for animals and vice-versa. This leads to disastrous consequences where both animal and human lives are lost due to the side-effects on the bodies of both. The basic purpose of the experiments remains unfulfilled and many lives are lost in the process. The issue has also been dealt from the angle of the ethical treatment of animals, in the article. It argues against the use of animals in scientific and medical experiments. Instead, it proposes the use of other techniques that would be able to predict the effects of drugs on human beings. The loss of animal and human lives can thus be minimized, leading to a more harmonious existence for the whole of mankind. This would lead man to treat anim als as friends and not as objects for scientific research (Killing Animals and Humans). Animals are Friends, not Scientific Experiments â€Å"Killing Animals and Humans†, an article that appears on the website of the organization Animal Aid talks about how the entire process of killing animals for the benefit of human beings is a futile exercise. ... The reason that is provided for the insensitive slaughter of these animals is the development of drugs that may be used for the treatment of diseases in human beings. The article hints that the humanitarian side of the debate is often overshadowed by the financial aspect of it. The reason for this may be that these experiments are often funded by big firms and research institutions that have their own lobbies. The article reveals in great detail, the different methods that are used to torture animals and the inhumanity of such an approach. The article also exposes the flaws in the legislative structures of nations across the world where atrocities against animals are often not taken very seriously. The essay also busts the myth about the utility of these experiments to the human race. It cites examples of lives that have been lost as a result of these experiments. As opposed to the common perception that these experiments lead to the loss of only animal lives, it also leads to the lo ss of human lives. These experiments often overlook the fact that animals and humans may not react in the same manner to the same drugs. The different effects that these drugs produce have led to many mistakes in the field of medicine, something that is the public is often not aware of. The essay talks of how medicines that have worked on animals that are as close to the human race as chimpanzees has failed completely on humans. An administration of these drugs to humans without proper research into the human anatomy would always lead to disaster, according to the article. As a result of these mindless experiments, thus, no purpose is fulfilled except the deaths of many humans and animals. The article, as a means of a solution, proposes a paradigm shift in the way experiments

EXPERIENCES OF NURSES WORKING IN PALLIATIVE CARE Dissertation

EXPERIENCES OF NURSES WORKING IN PALLIATIVE CARE - Dissertation Example (Harris, Flowers, Noble, 2011) In a qualitative study by (Brajtman, Higuchi, McPherson, 2006) they looked into the matter related to the challenges the nurses face in palliative care, to explore their experiences in caring for patients with terminal delirium and their families. This qualitative research will emphasize the importance of qualitative interviews as most powerful method for understanding the experiences and meanings related to the topic. This study was conducted in a palliative care unit located in a large Canadian city hospital for 5 nurses working in an interdisciplinary palliative care unit and 4 nurses form palliative home care nursing team located in the same city. Few interview questions have been generated for the nurses to proceed with the qualitative study. Based on the questions results which has been found are like most of the participants said that they experience distress while caring for palliative care patients. They said that if they gather convenient skil ls and knowledge in the identification and diagnosis they can help to support the patient in better way and family during disturbed conditions. Understanding the unique nursing experience is very much important in the process of providing the nurses with required support to make them strong and help them to provide care in challenging situations. Nurses also identified their team members as most major source of support. They also mentioned that effective teamwork would help them to deal with palliative care patients and their families more efficiently. There is need for proper education and training for the nurses to face challenges with palliative care patients. Lack of education may experience in serious stress for these nurses in care of the dying people and their families. It is important to check that nurses should receive appropriate knowledge, skills and support to care for this patient (Brajtman, Higuchi, McPherson, 2006, pp.6-7). Thus from this study we can understand that proper opportunities should be provided to the nurses so that they can face challenges confidently. The support of organization, teammates and family will enhance the quality of care. The number of sample chosen here is very small. A primary research should contain minimum 20 samples to carry on with a proper research. But here amount is very small which is not very good to conduct a research. A larger sample would have been beneficial to obtain greater depth of data as there was no clear evidence to overcome the challenges. White, et al (2004) found similar trends in his study. He explored with qualitative descriptive study using semi structured interviews with nurses caring for palliative care patients. Here 9 experienced palliative care nurses were interviewed. The participants here explained about their experience and challenges they face regularly. The nurses reported that they have enormous impact on their work and personal lives. The nurses here describe about two types of su fferings, physical and emotional or psychological. Most of the nurses reported here that they try their best to relieve a patients suffering and when they cannot help the patient with such condition they get a feeling of helplessness, distress, frustration and a sense of failure. Some of the nurses also mentioned that they did not want to dwell with those things and thus tried to go back home with a fresh

Set of laws governing public and private security agencies Essay

Set of laws governing public and private security agencies - Essay Example The rate of fatal crimes like homicides and cold blooded murders rose to an unacceptable level for the public. On the other hand the governments around the world blamed persistent economic recession, for their inability to invest in the betterment of the security setup. This above mentioned problem gave rise to the development of privately owned security companies, which worked for the last two decades to provide adequately acceptable security, with the help of latest technology. They are also fairly successful in fulfilling their promises, which compelled the general public to trust them more often. This trend led to the higher level of acceptability of these agencies in the society. According to some famous researchers, this fashion led to cause the shift of power needed to manage the security setup from federal agencies to general public and organizations, thus resulting in the decentralization of authority among civilians (Benson, 2007), who possess the money to hire their own ar my. This phenomenon caused the sense of inequity and insecurity among those who are weak. As a consequence, the prevalence of fear increased in the community. This practice also fueled the cold war for the authority among private and public security agencies, which impacted negatively on the standards of the already decaying security setup. However, the roots of these private security providers could be found in the large scale layoffs in military, after the end of cold war. This left, many highly skilled militants out of job. Due to this reason, they formed collations with each other and started robbing the government’s military facilities in the beginning (Schreier & Caparini, 2005). Thus with the passage of time these organizations formalized their existence and structure. Another important facet of this phenomenon is the consistent collaboration, between the government and private weapons producers, through which the former entity is getting war equipment from the latter one (Avant, 2003). This trend is playing a significant role in strengthening the weapon producers in terms of influence. These non-government security organizations are also used for the following purposes The employees of privately managed security companies are often sent on the harmony preserving missions of UN, because of the fact, that most of the developed nations do not deploy their military forces on these type of missions, due to their political reasons (Schreier & Caparini, 2005) These forces are also deployed in the case of large scale calamity effecting any nation, with the mission of helping humanity (Schreier & Caparini, 2005) They can also be used in support capacity in cooperation with other federal law enforcement agencies (Schreier & Caparini, 2005) Governing Laws for Public Reinforcement Agencies The major purpose of these organizations is to protect the citizens of the country from any kind of loss, due to theft, murder, fraud and other similar activities. They a re under strict monitoring of the government, which results in highly formalized chain of command structure (Glover, 2012). Following are the laws governing formal security operations in US implicated. The police officers cannot investigate any citizen without legitimate reasons They cannot arrest anyone without permission from government officials They cannot search anyone without

What is applied anthropology and how did it emerge Essay

What is applied anthropology and how did it emerge - Essay Example As a consequence of this, the British were able to colonize large regions of the world during the colonial period. Before World War II began, the British colony had to change its tactics by engaging itself in more positive administrative arrangement that could be catalysts to strategic economic growth of its colonies. Heavy funding and underwriting began to stream towards social science exploration in African. This funding, ideally, was through a couple of mechanism, which included funding from foundation like the Rockefeller foundation and Carnegie Corporation. A portion of these funds permitted the anthropologists to liberate themselves from a prism relationship, including colonial emissaries and subjects. In the early 1940s, the British enacted an act that saw the provision of funds for social science explorations in the protectorates. The reason that social science reached were carried in out in the British colonies, was primarily shed light into the human society of Africa, which was apparently a lot less known. The results that were collected from these pragmatic researches provided anthro pologists with crucial information, which they transformed it later into compelling theoretical products (Chambers 2008, p54). In any case, without this transformation, the whole process would malformed. The researchers ensured that anthropology came out as a science, so that it would get full government support. However, if anthropology emerged as snot a science, there was no way it would have received any government support. This success saw an increase in total number of academic departments. Additionally, as the British ceased their operations in the colonies, applied anthropology began to erode gradually. However, applied anthropology was evidently not developed fully enough theoretically (Escobar 2008, p87). Apart from colonialist Europe,

Validity of CBTIs Essay Example for Free

Validity of CBTIs Essay Opinions regarding the trustworthiness of CBTIs vary considerably. On one extreme are those who argue that the practitioner can have a great deal of confidence in most commercially available test scoring and interpretation programs, since the testing industry usually maintains high standards for computerized assessment. At the other extreme are those who argue that for many programs there are few, if any, published reports of empirically demonstrated validity. Obviously, the validity of any CBTI system depends on the validity of the test for which it is developed: Discussion of this constraint imposed by the general status of psychological assessment lies beyond the scope of this article. Assuming validity of the measure itself, the validity of the CBTI depends on how closely the developer of the system conforms to actuarial findings for the instrument. A CBTI system is actuarial only if its interpretive output is wholly determined by statistical rules linking test scores to non test criteria. In reality, even the best CBTI systems are not fully actuarial, and many present no evidence of relying on actuarial findings to any extent. Moreland lamented that many CBTI systems are developed by individuals with no special qualifications who have never published a scholarly article on either the test in question or on the CBTI. (Forgionne 2005) Scholar noted several factors limiting validity of CBTIs. Among these are (a) unreliability of measures (including both the test itself as well as non test criteria on which test narratives may be based), (b) unwillingness to permit unclassified cases in situations of insufficient or ambiguous data, (c) inadequate attention to base rates and poorly analyzed cutting scores, (d) prediction of non test behaviors beyond those warranted by specific test findings, and (e) generalization across testing situations and populations without regard for potential moderators. Additional sources of error in CBTIs include miscommunication between the interpretation author and the programmer, as well as errors in the automated-interpretive algorithm itself. It bears noting that, with the exception of programming errors, these same shortcomings plague clinician-generated reports to an equal or greater degree. Thus, potential threats to the validity of CBTIs noted here should not be interpreted as favoring non computerized reports. Identifying potential sources of error in a CBTI system remains difficult. Consumers would be better positioned to evaluate specific components of CBTIs if interpretive rules were made available, although these are rarely presented because of proprietary concerns of the developers. Often only portions of CBTI systems have been validated. for example, restricted samples used in validity studies may activate only a subset of narrative statements in the interpretive library. Moreover, CBTIs are often rated for accuracy at the global level. rarely have discrete elements at the sentence or even paragraph level been examined empirically In addition, most CBTIs are closed systems that preclude the user from modifying or replacing either the decision rules or corresponding interpretations for specific components based on local norms, characteristics of the respondent known to moderate test-criterion relationships, or other considerations. Specific strategies for examining the validity of CBTIs vary but generally can be grouped into three approaches ranging from least to most restrictive: (a) customer satisfaction studies, (b) expert opinion modeling, and (c) external criterion studies. (Steiger 1998) Customer Satisfaction Studies In customer satisfaction studies, consumers rate one or more elements of the CBTI (eg, single ratings of the overall report vs. multiple ratings of discrete narrative elements) along one or more dimensions (eg, accuracy, clarity, internal consistency, omission of relevant information, and inclusion of trivial or misleading information). Because such studies do not rely on independent criterion data regarding the test respondent and therefore are less difficult and less costly to conduct, customer satisfaction studies of CBTI validity are more common than other types of CBTI validity research (although even customer satisfaction studies are infrequent relative to the number of commercial CBTI systems available). Several methodological considerations germane to CBTI customer satisfaction studies, among these were the need for (a) a relatively large, representative sample of users or potential users of that interpretive system. (b) Adequate sampling of test respondents both with respect to common socio demographic moderators, as well as the behavioral domains addressed by the test. And (c) specific ratings of discrete narrative elements along multiple dimensions such as those noted above. Even more critical than these are the need in customer satisfaction studies to control for various rater response sets, Considerable attention has been given in the literature to the impact of global, non differentiating descriptors or Barnum statements on ratings of perceived accuracy. As noted, various studies have shown that consumers assign greater accuracy to narratives with a higher saturation of nonspecific statements, particularly when these descriptions are attributed to persons of authority or expertise. Given this tendency, findings from the international study of computer-based MMPI-2 reports might be regarded as less than compelling, a limitation also suggested. (Martinsons 1999)

Childhood Obesity as a Global Epidemic

Childhood Obesity as a Global Epidemic Childhood obesity has reached epidemic proportions worldwide and its prevalence is increasing e.g. In america, direct measures of body mass and height obtained through the national health and nutrition examination survey (nhanes) indicate that approximately 15% of 6 19 year olds were classified as overweight in 1999 2000. This value was up approximately 5% from 1988 to 1994 (ogden cl,p1728) All of the literature refers to similar statistics regarding childhood obesity. The list below gives some examples of the data available from the different sources. obesity has more than doubled between 1990 and 2000 in britain. one in 10 six year olds (8.5%) are obese. one in six (15%) 15 year olds is obese. if the current trends continue, one fifth of boys and one third of girls will be obese by  2020. Obesity is measured using the body mass index (bmi) for an individual. This is measured through a calculation relating height to weight and age, and there are agreed figures for obesity. 2 INTRODUCTION Obesity is measured using the body mass index (BMI), for an individual. This is measured through a calculation relating height to weight and age, and there are agreed figures for obesity. Childhood obesity is becoming a worldwide problem. All the articles that were reviewed highlight the rising levels but also look into health and school policies to tackle the problem. All the articles also support family focused approach for influencing dietary habits of the children, as well as support and involvement of the communities. Diseases which were only diagnosed in adults are now also diagnosed in the children, e.g. Heart diseases, diabetes, some cancers, hypertension and dyslipidemia. (vitale, e: 2010) Children are not fully responsible for their own health choices and rely on adults to protect and nurture them. (vitale, e : 2010). In South Africa overweight and obesity are not restricted to only one population group or socio-economic group. The South African youth risk behaviour study (www.mrc.ac.za/healthpromotion.htm) showed that overweight and obesity are very common in all age groups. 3 ARTICLES REVIEWED Vitale, E. (2010). A School Nursing approach to childhood obesity: an early chronic inflammatory disease. Immunopharmacology and Immunotoxicology, 32(1), 5-16 Berg, Frances M. (2004). Underage Overweight: Americas Childhood Obesity Crisis What Every Family Needs to Know. Preventing Chronic Disease Public Health Research, Practice, and Policy, New York:Hartherleigh Press 464 p Kristen, R. Howard. (2007). Childhood Overweight: Parental Perceptions and Readiness for Change. The Journal of School Nursing, 23(2), 73-79 Armstrong, M E G, Lambert, M I, Sharwood, K A, Lambert, E V, (2006). Obesity and overweight in South African primary school children the Health of the Nation Study. 11(2), 52-64 Steyn, N P. (2005). Managing childhood obesity: a Comprehensive Approach. CME 23(11), 540-543 Goedecke, Julia H, Jennings, Courtney L, Lambert, Estelle V. (1995-2005) Obesity in South Africa. Chronic Disease of Lifestyle 65-78 Ben-Sefer E, Ben-Natan M, Ehrenfeld M, (2009). Childhood obesity: current literature, policy and implications for practice. International Nursing Review 56, 166-173 Saunders Karen L, (2007). Preventing obesity in pre-school children: a literature review. Journal of Public Health 29(4), 368-375 Van Staveren, T and Dale, D (2004). Childhood Obesity: Problems and Solutions. JOPERD 75(7), 44-49 4 RESEARCH TITLE A good title should give insight into what (what was done), whom (it was done to) and how (it was done) Vitale, E. (2010). A School Nursing approach to childhood obesity: an early chronic inflammatory disease. Immunopharmacology and Immunotoxicology, 32(1), 5-16 What (was done) A School Nursing Approach Whom (it was done to) Children with Obesity How (it was done) As a Nursing Approach can be observation or questionnaires The titles of the articles reviewed communicate an intent and findings of the research that was done for the articles. All the articles reviewed titles were specific enough to describe the contents of the research that was done, but not so technical that only specialists will understand it. The titles also describe the subject matter of the article e.g. a school nursing approach to childhood obesity: a chronic inflammatory disease. All the above mentioned literature research titles were very concise and descriptive. The titles also prick me as reader and motivated me to read the whole article. PURPOSE To discuss the current literature in relation to childhood obesity and to provide health practitioners, especially nurses, with the fundamental knowledge that is imperative in the recognition of children who are at risk and thereby tailor appropriate interventions. KEYWORDS The following words was used as keywords throughout the articles that was reviewed: childhood obesity, obesity, overweight, nursing, nursing program, chronic disease The terms obese, overweight, and at risk for overweight have not been used consistently in the research literature regarding children and adolescents. Children and adolescents identified as overweight have a body mass index (BMI) at or above the 95th percentile of the sex-specific BMI-for-age growth charts DEFINITIONS Childhood Obesity Is defined as having a Body Mass Index (BMI) greater as the 95th percentile. BMI = weight in kilograms à · height in meters2 The BMI of an individual is correlated to the total body fat and percentage body fat. Overweight in childhood According to the National Center for Health Statistics (NCHS), overweight in childhood is defined as having a body mass index (BMI) at or above the 95th percentile, based on the current growth chart designated for each gender. Overweight Overweight is generally defined as an excess of body mass (in practice this is mostly body fat), whereas obesity is defined as an abnormal excess of body fat. For this reason, the Centers for Disease Control and Prevention (CDC) uses the terminology extreme overweight instead of obesity when estimates are based on relative weight indices (like the Body Mass Index, see below) rather than on direct measurement of body fat. Obesity Obesity is when there is too much body fat other than the fat tissue in our bodies. It is also defined as an excessively high amount of body fat or adipose tissue in relation to lean body mass. RESEARCH PROBLEM Childhood obesity is a worldwide spread chronic disease. There are many factors contributing to this chronic disease e.g. genetics, environment,metabolism, lifestyle and behavioural components. Overweight or obesity during childhood in most of the industrialized world, a childhood obesity epidemic is evident, with the numbers rising each year. Obesity impacts many lives: male and female of all ages, races, economic background, and education status Why is obesity a chronic disease? Obesity is associated with high blood cholesterol, complications of pregnancy, menstrual irregularities, hirsutism (presence of excess body and facial hair), stress incontinence (urine leakage caused by weak pelvic-floor muscles), psychological disorders such as depression and increased surgical risk. It affects more than a quarter of the American population. Obesity may also causes other serious medical conditions e.g. cancer, heart diseases, diabetes, etc. LOGIC ARGUMENTATION Examining the work of the the above mentioned authors on the childhood obesity issue, there are a genuine challenge to achieving, legitimate, cost-efficient progress on childhood obesity. And if we are honest about why the childhood obesity problem needs to be at the top of policymakers agenda, the most compelling answer comes back to money. It is a serious medical disease that affects over a quarter of adults in the United States, and about 14% of children and adolescents. It is the second leading cause of preventable death after smoking. Berg makes a compelling and convincing argument that the dangers of childhood obesity are real by highlighting the increased risks overweight and obese American children face for obesity-related health problems such as type 2 diabetes, hypertension, and psychological disorders. She notes, for example, that from 1979 to 1981, the annual hospital costs related to obesity among children and adolescents were $35 million; from 1997 to 1999, these costs rose to $127 million. Evidence from the literature provides proof of Bergs claims about the reality of the dangers of childhood obesity and further supports her reasonings that American society must take responsibility to reclaim the health of generations to come. There are many arguments that obese children will be stigmatized and that this will increase bullying, as well as leading to an increased number of children suffering from eating disorders in the future. A number of people In addition, feel that parents should be able to tell that their child is overweight and that the money could be put to better use by doing something to help change the situation. Many consider obesity an individual matter. However, children cannot be accountable for their weight. The children have little knowledge about the anatomy of their bodies. Children will keep eating if they see that junk food is advertise all over and ok. There are two main arguments on this issue: 1) Child obesity is mostly caused by food advertisements, and 2) Parents are not doing their jobs. Some argue that children are growing obese, because of the exposure to food advertisements. They believe that the government should step in and regulate food advertisements on children. A child becomes obese not because he or she watches advertisements, but because they sit in front of a television all day with no exercises or any other physical activities. In addition, it is believed that the schools as well as government is obligated to fix the epidemic. The generation has a major problem that will result in statistical records of people with heart disease, high blood pressure, and diabetes. A solution to the epidemic can be the corporation between parents, the industries, and the government. Dr. Peter Nieman, (2004) a practicing pediatrician, has identified three main causes of childhood obesity: genetics, overeating and lack of exercise. He emphasizes that it is important to understand that the causes of obesity are often a combination of these three factors. Obesity if just not the result of a single factor. As the government becomes more aware of the serious problem of childhood obesity, schools in the UK are now planning to weigh and measure all children at the ages of 4-5, when they start primary school and again at 10-11, when they are about to leave for secondary education. Van Staveren.and Dales (2004) article: Childhood Obesity: Problems and Solutions discusses the problems related to the epidemic of Childhood Obesity. There are many problems that could have led to this epidemic but in their article, they only discuss the main four problems. The Authors feel that the following are the main causes for Child Obesity: Unhealthy food in schools No policies on good dietary in schools Unhealthy food in family life and A Lack of family responsibility towards children regarding their diets. There are many arguments that obese children will be stigmatized and that this will increase bullying, as well as leading to an increased number of children suffering from eating disorders in the future. A number of people, feel that parents should be able to tell that their child is overweight and that the money could be put to better use by doing something to help change the situation. Being parents, most of the people ask what they can do to help their children keep their weight under control. Parents can set a good example by providing healthy nutritious meals and not eating junk food themselves, but it is important to allow some treats, as being over strict is likely to cause friction. If the whole family learns about healthy nutritious eating and try cooking new healthy recipes together, kids wont feel they are being singled out. It is also very essential not to focus too much on food. Although it is an important part of life and can never be avoided, it should not be made the main topic of discussion in the family. If the overweight children are constantly reminded of their weight and what overeating can do to them, they could develop an unhealthy attitude towards food. So the parents must be sure to focus on other things, certain areas of life which are not stressful and which their child enjoys as well as good activities with the children e.g. jogging all together as a family in a park. People might believe that children eat no more calories than children 20 years ago. The fact is that, the increasing obesity rates are likely due to a combination of changes in both eating and exercise habits. Although the increase in calories has been difficult to define due to imperfect assessment methods, it has become very clear that children eat much more processed starch and sugar especially in the form of soda coldrinks and other sugary drinks than in past years. Parents often need to compromise or negotiate with children in regard to their food intake, and teenagers certainly make many of their own food-purchasing decisions on the basis of, in part, advertising. Marketing food to children dramatically worsened their nutritional intake. The issue on obesity continues to grow everyday, especially in newer generations. Many are saying generation x and future generations as well are going to be the only generations that are not going to outlive their parents. Childhood Obesity is a major contribution to these assumptions, it causes diseases and many other health problems. Dr William J. McCarthy uses logical argumentation with his audience by saying many children in this generation are becoming over weight. During McCarthys interview in the video Project 1a, he tries to warn parents as well and, with the use of pathos, (Pathos is a communication technique used to represents an appeal to the audiences emotions ) by frightening parents into believing their child is at a high risk of a disease. He states, they are starting to see diseases, which were really unheard, This causes parents to worry about their children and want to reduce the risk of them obtaining a disease. After hearing these facts parents may help their children eat healthier so they are not overweight and have a less chance of obtaining a disease. CONCLUSIONS From this review, it is apparent that obesity in South Africa is a growing problem in all sectors of the community, yet a particular challenge in children and urbanised black women. To address this problem and the associated morbidities in South African communities, a multi-sectoral approach is needed. This should include changes in policy aimed at creating an environment conducive and supportive for change, such as the promotion of physical activity and dietary education in schools. In addition, The opportunity for primordial prevention of obesity, particularly in children, should be promoted. These prevention strategies should be culturally sensitive and encompass programmes to improve the Education, status and economic empowerment of women. This assignment highlights the strengths and weaknesses of the systematically reviewed literature relating to the prevention and treatment of childhood obesity. Prevention is not realy discussed in the existing literature and no specific approach to intervention can be recommended. As prevention is generally considered the most effective, economical and socially acceptable approach to addressing the obesity epidemic, the need for clear principles upon which to base prevention strategies must be considered an urgent research priority. The reviewed literature can provide an evidence-based framework for preventative interventions. It is clear that preventative programs should include strategies to address diet, physical activity and behavioural change. With the development of guidelines in school health care the authorities should have a better understanding for the optimal spending of public money for the sake of the health of the childhood With the development of a guideline on the prevention of overweight and obesity in childhood representatives of school health care in three European countries (i.e. Croatia, flanders and slovenia) can use the same methodology in order to elaborate common evidence-based recommendations for school health services in their countries. On top of these common recommendations, some specific advices were added in accordance with the organisation of health care and school health care in the respective countries. Any country that has a high rate or increasing rate of childhood obesity must acknowledge core factors that contribute to this serious health problem. Furthermore, public policy and community involvement that include all health professionals have a responsibility in the prevention of childhood obesity. This can be implemented through education, research and advocacy of all nurses involved with children and families. Guidelines on school health care aim at increasing the effectiveness, efficiency and quality of the preventive health care as it is delivered to school aged children and adolescents. They should contribute to a better health, growth and development of children, on an individual as well as on a population level. After being informed about the principals of the guidelines, parents and children should have a clearer idea about what to expect from the school health service, and become more conscious of their own and their childrens health. Any country that has a high rate or increasing rate of childhood obesity must acknowledge core evidences that contribute to this serious health problem. This can be implemented through education, research and health education by all the nurses involved with children and families. Obesity effects thousands of Americans every year. In order to maintain a healthy weight and stop the spread of this chronic disease is by exercising and eating a balanced diet. Dont become a victim of such a deadly disease!