Marketing Communications Essay Example | Topics and Well Written Essays - 750 words

Marketing Communications - Essay Example The inter-dependence of the various elements within the system has vast potential to establish a market that is sustainable as well as mutually satisfying. Indeed, as per the video (persuaders), one of the major challenges of modern integrated marketing is anticipating the changing requirements of the people and using effective advertising to connect emotionally with the people. Kotler has defined IMC as the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent and compelling messages about the organization and its products (Kotler, 2009). Even though the customer base is increasing, it is becoming difficult not only to attract more customers but also to retain them. So, one need to add something ‘more’ on the existing products to make it more attractive without compromising much on the price. In fact, the more innovative the product and fancier the promotional techniques, the higher are its chances of capturing market space. Thereby, asserting that brands, advertising, and promotional techniques are very important tools of marketing. Baker and Hart have asserted that ‘putting people into marketing is essential for many reasons’ and not the least being that all businesses fundamentally cater to the needs of the people (Baker & Hart, 2007). Advertisements and media play a very crucial role in the strategy planning and are often used to define company’s position vis-Ã  -vis the market strategy for non market factors. A well defined market strategy is the key to success in any new market. The various media in the region are important tool to popularize the company and help establish its brand among the masses. Analysis and identification of the changing trends of the customer requirements are important ingredients to gain leverage against their rivals. Understanding of consumer psychology,

Rhetorical Analysis of Obamas Inaugural Address 2008 Essay Example for Free

Rhetorical Analysis of Obamas Inaugural Address 2008 Essay The 2008 presidential campaign was controversial, emotional, historical and also amidst an economic crisis. Barack Obama’s victory marked a change in American society regarding race and politics. His election as the first African American President of the United States is profound and signifies a changing America. Obama gave his inaugural address on January 20, 2009 in Washington D.C. Unlike the campaign, the inauguration was a celebration, marked by clear skies and a patriotic crowd. More than one million people gathered in the National Mall to support the newly elected President despite cold weather. His primary audience was the American people viewing, but he also appealed to a secondary audience consisting of nations across the globe. Obama’s use of diction, tone, and vocal variety created a powerful delivery that supported his implicit purpose. In order to achieve his explicit purpose, he established and maintained a positive ethos and appealed to pathos through imagery. Obama’s explicit purpose was deliberative and challenged Americans to return to the moral truths â€Å"upon which our success depends†. He does not clearly state his main claim until the end of the speech. He goes on to list these truths as, â€Å"honesty and hard work, courage and fair play, tolerance and curiosity, loyalty, and patriotism†. After listing these values and challenging Americans to return to them, he states, â€Å"[w]hat is required now of us is a new era of responsibility – a recognition, on the part of every American, that we have duties to ourselves, our nation, and the world [. . .]†. He is leaving it up to American citizens to take responsibility to face the challenges of today by returning to principles of yesterday. Implicitly, Obama’s speech was an attempt to generate a sense of hope back into America. He chooses words such as ‘hope’, ‘unity’, and ‘peace’ in order to rhetorically soothe the audience. He delivers a powerful implicit message through his use of diction, tone, and vocal variety. The diction that Obama used in addit ion to tone and vocal variety created a powerful delivery that contributed to the success of his motives for speaking. By choosing to use particular words or phrases, Obama was able to convey his message more clearly and he was also able to affect the audience in a particular way. For example, near the beginning of the speech he says, â€Å"[t]he time has come to reaffirm our enduring spirit†. This is another way of stating his explicit purpose. Telling the audience that they have an ‘enduring spirit’ is an attempt to encourage them to press on. Another example of this encouraging diction is when he says, â€Å"we must pick ourselves up, dust ourselves off, and begin again the work of remaking America†. This phrase received great reception from the audience because of the optimism it instilled. Not only did the specific words that he chose contribute to the success of his speech, but the way in which he delivered the words ultimately made the purpose of the speech successful. Throughout the duration of his speech, Obama maintained a clear, strong, confident voice that easil y projected across the magnificent crowd. He enunciated each word clearly and carefully and adjusted his tone appropriately with his speech. He also emphasized particular words in order to stress their significance. One particular example of this was when Obama was discussing our common defense and he said, â€Å"[a]nd we are ready to lead once more†, stressing each word separately and with great force. This is important because it gets the audience’s attention and not only focuses on his explicit purpose, but also implicitly creates optimism that generates hope into the crowd. In order to gain credibility with his audience, Obama had to first establish a positive ethos. Without credibility, Obama would not be able to achieve his primary purpose. He appeals to ethos when he opens his speech with â€Å"[m]y fellow citizens†. By putting himself on the same level as the people who had elected him President, he was able to gain their trust and respect. He does this again when he says â€Å"[. . .] We the Pe ople have remained faithful† only a few sentences later. Not only does Obama have to establish a positive ethos to accomplish his explicit purpose, he also needs to maintain a positive ethos. He does this successfully several times throughout his speech. One way in particular that he does this is by continuing to include himself with the American citizens. He does not blame the state of the economy on the government, citizens, or anyone else, but instead calls it â€Å"our collective failure to make hard choices†. He could easily point a finger at another political party, for example, but he does not, and that maintains his positive credibility. A final way in which Obama establishes and maintains a positive ethos is by addressing the opposing side. He discusses how they will criticize his plans and refutes it by saying, â€Å"[t]he question we ask today is not whether our government is too big or too small, but whether it works [. . .]†. By taking the opposing side into account, Obama demonstrates that he is well prepared and credible which enables him to achieve his explicit purpose. Obama also appeals to pathos through descriptive imagery in attempt to motivate people to return to old moral values. He discusses the Americans who have struggled, sacrificed, and persevered for generations and the examples that they are. For instance, he says,â€Å"[f]or us, they packed up [. . .] and traveled [. . .] [f]or us, they toiled in sweatshops [. . .] endured the lash of the whip [. . .] plowed the hard earth[. . .] [f]or us, they fought and died [. . .]†. His repeated use of â€Å"for us† is an example of anaphora and is significant because it reinforces the sacrifice behind the struggle. He wanted Americans to remember those in the past who had fought and endured for freedom and victory. By doing this, Obama further motivated his audience to return to old moral values and encouraged them to take responsibility to face the challenges of this age. In conclusion, Barack Obama’s diction, tone, and vocal variety contributed to an influential delivery that directly influenced the success of his implicit purpose of instilling optimism into the American people. By establishing and maintaining a positive ethos, Obama created a more receptive audience that was willing to hear what he had to say because of his recognized credibility. This enabled him to achieve his primary purpose of challenging Americans to return to old moral values and to take responsibility for themselves, their nation, and even the world. Finally, Obama appealed to pathos in an attempt to further challenge Americans by reminding them of brave Americans from the past who have struggled and sacrificed so that freedom could live on. Barack Obama’s Inaugural Address is quite successful when analyzing these elements because he effectively fit his message to the current economic circumstances and used suitable techniques to appeal to the audience.

How Technology Has Changed Law Enforcement Criminology Essay

How Technology Has Changed Law Enforcement Criminology Essay The purpose of this paper is to discover how technology has changed the role of law enforcement personnel and how crimes and criminals have changed since the days of the Roman Empire. The objective is to show the advancements in technology that will aid our law enforcement agencies and police in fighting crime and to stop crime before it happens. This paper explains how the role of police officer has slowly changed up until the 21st century. Since the year 2000, everything has been quickly changing. New technologies have provided criminals with a whole new class of crimes and have also made it extremely difficult for them to get caught. At the same time, new technologies have been developed to help law enforcement fight against this new class of crime and criminal. The problem is that the new high-tech criminals are ahead in the fight. Although there has been a trend of consolidating law enforcement agencies, over the years, there is still a large resistance to the idea. Many states have merged agencies and have become more efficient in the way of service but many more a slow to realize the benefits of merging when it comes to fighting globalized crimes. Government agencies, such as the FBI, CIA, and Homeland Security seem to have an endless supply of funds that they can use to obtain the ways and means to fight 21st century crime. Terrorism is their main concern. Those at the federal level are attempting to merge efforts with state and local law enforcement agencies. Not much evidence was found to show that the federal government agencies are providing the lower levels of law enforcement with much needed funds. How does the role of police officer need to change in order to adequately protect our citizens from 21st century crimes and criminals? Chapter 2: History of Law Enforcement From the time when the development of society first began, some sort of law enforcement existed to defend the people against violence and crime and to keep rulers in command. Even in the Biblical era, there were armed personnel enlisted to uphold the peace. In ancient Egypt, a pharaoh reined over the land and his army of soldiers pursued the Israelites through the Red Sea. There were other similar civilizations like the Babylonians, the Syrians, and the Palestinians, just to name a few (Uchida, 1993). The most well established of all military armies was the Roman Empire. The Romans had an incredibly efficient and brutal mode of law enforcement that was established in order to uphold peace and enforce order. The Roman citizens never actually had an authentic police force, it wasnt until clan chiefs and state leaders were required to protect their people, back in the 5th century that police forces were established (Uchida, 1993). London was first to hire and pay keepers of the peace back in 1663. The idea quickly spread throughout the U.K. In June of 1800, Scotland established the Glasgow city police department. Glasgow police were the first trained police officers and were proficient in defensive policing. In 1829, Scotlands Parliament passed the Metropolitan Police Act, establishing the earliest civil police force model that has, over the last 181 years, has been adopted by many other countries, including the U. S. In 1834, Canada established its Toronto Police Force, making it one of the first police agencies in North America. 1939 brought the first full-time police department in U. S., namely, the Boston Police Department (Uchida, 1993). When civic policing was originally established in London in 1829, the focus was on stopping crime before it started: The community and the officials themselves looked upon the goal of policing as the nonexistence of crime. The original police officers in the U.S. were called peace officers; nevertheless, a markedly American approach of policing started to transpire in the States subsequent to the ending of the Civil War. As early settlers colonized the West, they realized they had to protect themselves from the natives. This realization led to the development of vigilante groups that were able to establish a list of township laws and frequently hired a so called gunfighter to be the townships sheriff in expectation of adequate protection. Over the decades, the American policing system changed from preventing crime to capturing and punishing law breakers. This system of law enforcement has reigned over time and has been adopted by numerous other countries (Stephens, 2005). The first modern police teams in America borrowed a great deal from those previously established in England. American law enforcement agencies adopted the strategy of crime deterrence, defensive patrol, and the military directorial plan of the first contemporary police department in London. American policing also borrowed additional elements from the English structure, such as, limitations to the amount of authority bestowed to police officers (Maguire, 1997). The security of individual freedom was greatly stressed in both the U. S. and England, consequently, limits were established on legislative and police authorities. This wasnt the situation in other European nations, where police organizations were allowed a wider range of control and individuals had few personal freedoms (Walker, 1999). Many countries have one central, state-run law enforcement agency. The U. S. and England do not. The American structure of law enforcement is controlled at the local, state, and federal levels, with the bulk of departments being community municipalities. One feature of U. S. policing system that was adopted from English heritage is a vastly decentralized and fragmented method of law enforcement. According to 1993 statistics, there are just about twenty thousand single law enforcement agencies within the U. S. The lack of organization and cooperation between individual law enforcement groups is a common characteristic of the American approach to law enforcement (Maguire et al, 1998). Even though the U.S. adopted the English model of a police force, there are several differences between the English and U. S. methods of law enforcement. England does not have a powerful political influence over their police agencies, unlike the U.S. and our daunting relationship between politics and policing. In fact, policing in America throughout the 19th century has been described as being disorganized, unproductive, unprofessional, and extremely corrupt (Walker, 1999). Those were times of high turnover of police officers, largely due to politics. For this reason, officers were not likely to have chummy relationships with the neighborhood people. During this time, police officers were notorious for brutality and were highly disrespected by the community. Police corruption led to an increase in violence among the towns people as well and thus resulted in weapon toting policemen (Walker, 1999). The 20th century brought on major changes to policing in the U. S. Underlying these changes was three main principle forces: (Gaines et al, 1999). Political reform. Modern technologies. The civil rights movement. Early in the 1900s, an extensive social and political movement in the U. S. called Progressivism was bringing awareness to and calling for total reform across a wide gamut of societal struggles. Progressives alleged that it was the governments duty to enhance the living conditions of the people. The Progressives demanded laws that would regulation sizeable businesses and corrupt local politics, modifications in labor laws, and upgrades to the whole of social welfare services (Walker, 1999). This reform effort was to the professionalization of police officers. The professionalization movement was to reform the ineffective and corrupt police departments that had been created throughout the 19th century. During this era of reform, there was a complete restructuring of police agencies and the role of police officers was redefined. The reformers goal was to eradicate political control, hire competent leaders, and elevate recruiting standards. The reform agenda involved the development of an unbiased public service administration and the restructuring of police agencies through the utilization of the principles of scientific management and the creation of specialized units (Walker, 1999). Table 1 Number of Major Events in the Last 40 Years that helped form Law Enforcement into what it is today. 1970s 1980,s 1990,s 21st Century Civil Uprising 44 13 10 1910 KKK 1 1 0 0 Black Militancy 6 0 0 0 Terrorist Attacks 10 11 9 23 Failed Terrorist Attacks 5 3 2 10 Intercepted Terrorist Plots 0 0 7 25 Chapter 3: Early Technology in Police Work The 20th century saw new technology that had a notable affect on policing in the U. S. Three specific technologies revolutionized policing: (Garretson, 2005). The two-way radio. The patrol car. The telephone. The two-way radio furnished on duty communication among supervisors and their officers, immediately impacting the quality of service to the community. The patrol car was presented in the 1920s and drastically increased the mobility of officers and radically lowered response time. The telephone made it possible for people to have a direct connection with the police department (Garretson, 2005). These new technologies also had a few unconstructive consequences. The patrol car isolated the police officers, where previously on foot, the officers were well-known in the neighborhood they patrolled and were able to visit with the citizens they came in contact with. The patrol car made law enforcement officers outsiders in their own communities. The telephone seriously increased the patrol officers workload. Individuals commenced telephoning the police department for trivial and private troubles that patrol officers were not accustomed to dealing with. The telephone changed casual civilian contact to personal contact by bringing officers into peoples homes (Garretson, 2005). Chapter 4: Modern Technology in Law Enforcement Here, in the 21st century, technology is advancing in the areas of; communication, computer systems, weapons, brain wave sensors, density scanners, amplified realism, biometrics, vision enhancers, and many more. Developments in technology will supply police departments with viable equipment that will greatly improve the effectiveness and efficiency of law enforcement personnel. Scientists within the Counterdrug Technology Assessment Center (CTAC) are operating with government agencies in the development of new technological devices that are going to be used by law enforcement agencies (Brandenstein, 2002). One such type of gadget is called the mini-buster. The mini-buster is a handheld device that senses the density of solid items so as to locate secret compartments that are concealed in the body of a vehicle. It can locate hidden compartments that could possibly be used to smuggle illegal imports, terrorist devices, and any other prohibited substances (Brandenstein, 2002). Scientists have produced a wireless interoperability system that can connect all federal, state, and local broadcasting frequencies. This system guarantees real-time communication for first-responder emergency personnel. To aid law enforcement officers with searches and evidence display, scientists have created a non-intrusive freight inspection device that discloses the contents of sealed containers. This device can also distinguish contents such as drugs, weapons, biological agents, and explosives. This device saves precious time and promises a certain amount of protection to police officers and investigators (Brandenstein, 2001). The scientists at CTAC have also created a video stabilization apparatus that electronically changes worthless, unstable surveillance video into comprehensible, court ready evidence. CTAC also supplies federal, state, and local law enforcement agencies with night vision and digital wiretapping devices (Brandenstein, 2002). Automatic License Plate Recognition (ALPR) systems are built-in camera databases that also take pictures of car license plates and then compare them against databases of stolen cars or license plates (Banlingit, 2009). ALPRs were created in the 1980s to fight IRA assaults in England. ALPRs monitor all automobiles entering London. In the U.S. the ALPRs were first utilized along the borders at points of entry. This fixed position technology has become accessible in smaller, more sophisticated editions. At this time there are a number of companies manufacturing mobile APLRs that can be installed onto patrol cars (Balingit, 2009). At the moment a police officer starts his car, the APLR continuously takes 60 pictures per second and processes each license plate. As soon as a plate number is obtained, the numbers and letters are processed with OCR software (Optical Character Recognition) and compared to the information in another database to reveal a match. Although not advisable, the ALPRs works so fast that an ALPR-equipped patrol car traveling at over 100 mph can process the license plate of each and every car it passes in a parking lot, on both sides, and in total darkness. Furthermore the driver of the police car by no means needs to remove his hands from the steering wheel (Balingit, 2009). Mobile ALPRs are presently being used all over the U.S. and Canada. When other databases are linked, these ALPRs will provide police officers with important information on the vehicle itself and the vehicles owner (Belingit, 2009). Â   One of the largest hurdles in dealing with people from a different nation is speech. Language limitations make a complex job of identification and interviewing more complex. Most law enforcement officers have access to some type translation service, typically in the form of telephone translation services. However, this kind of service is not equivalent to employing a native speaker. Language translators will be able to fill the void (NLECTC U.S. 2003). There are actually quite a few varieties: desktop, handheld/portable, and Internet. The desktop systems that are presently on the market do not necessarily offer the finest in free form translation, meaning you can actually talk into them and they will translate what you said into the language you choose. Due to the large amounts of memory required, these types of systems are generally made for use on desktop computers. This technology is not broadly accessible and the cost is astronomical. Inside a few years the cost will decrease and it will likely be logical to think that an officer will be able to interrogate a suspect in their native language through a computer and in real time (NLECTC U.S. 2003). The handheld language translators that are available today offer some speech recognition capabilities. Handheld systems do not permit a person to ask any questions they want, but they do contain the ability to recognize customary questions asked by law enforcement and afterward play back a translation. Created for U.S. military forces in Iraq and Afghanistan these translators are reasonably priced and could undoubtedly aid law enforcement officers with speaking to people in various languages. Other languages can be added at any time. Translation devices have the ability to facilitate agency operations and to cut down miscommunication among police officers and the general public (NLECTC U.S. 2003). Researchers in the U. K. are conducting biometrics research in order to assemble a database of violent criminals and sex offenders (McCue, 2003). This database will use facial and voice recognition systems to correlate with the electronic fingerprint and palm print identification system. Video cameras and microphones that are being used in public and concealed surveillance systems will be able to identify thousands of violent criminals that saunter by (McCue, 2001). The Pinellas County, Florida, Sheriffs Office currently utilizes facial identification equipment to identify prisoners booked into the county jail. The facial identification system is capable of taking four facial pictures in under five seconds. The images are entered into the database where they are accessible to law enforcement agencies all over the world (Facial Recognition, 2004). Law enforcement officers face a big challenge when people provide them with false information regarding their identity. Knowing the real identity of someone they are dealing with could mean the difference between life and death. Until recently, there were very few ways that an officer could use to determine who an individual really was. MVD records could be searched if a photo drivers license was presented, if the license is legitimate (Weiss Davis, 2005). Facial recognition technology uses unalterable facial features, such as the distance between the pupil centers of the eye. It then uses an algorithm, which is a finite set of steps for solving a problem, to convert the image to numbers. The computer program compares the digital photograph of a face with the ones in the database and is able to identify a match, with the most probable match first. The police officer then decides which of the computers matches of the person in question. Facial Recognition Devices can also be used to identify a body as long as a good image can be taken (Weiss Davis, 2005). Chapter 5: Future Technology in Law Enforcement The U. S. Department of Defense research workers have developed a very unique uniform called (LEAP), which stands for Law Enforcement Advanced Protection System. This uniform delivers ballistic, chemical, and biological armor for S.W.A.T. officers and Hazmat specialists. The LEAP uniform is made of a supple body armor that is designed to contain radios, extra ammunition, hydration pouches, and other necessary gear. The ergonomic load-bearing belt contains a pistol, magazines, handcuffs, flash bangs, along with other equipment. The LEAP helmet contains a GPS system, radio antenna, flashlight, drop-down visor with heads-up display, and a detachable mandible to cover the face and neck. The LEAP uniform comes with boots, kneepads, elbow pads, and a waste management zipper (U.S. Soldier Systems Center, 2004). Unmanned Aerial Vehicles (UAVs) are unmanned auto pilot planes designed to survey a predetermined area. First created during World War I, robotic aircraft were utilized for target practice on antiaircraft gunners. Currently UAVs are run by computerized steering or by an out-of-the-way operator, these devices are considered to be an important factor in near future law enforcement operations (Carafano, 2005). Recently, UAVs deployed in Afghanistan and Iraq have received significant publicity due to their capacity to identify and fire upon enemy targets. UAVs have the power to remain in the air for quite a few days; these devices are considered to be a crucial force multiplier enabling police officers to keep an eye on emergent situations with a birds eye view by means of specialized sensors and video equipment (Carafano, 2005). UAVs have been tested with a range of degrees of success by federal law enforcement agencies such as the Department of Defense and U.S. Border Patrol. The future of UAVs will not be exclusively available to agencies with mega dollar budgets. Restricted border monitoring committees including the American Border Patrol have operated cheaper versions of UAVs for detecting prohibited border traffic since 2004. Purchasing smaller, consumer retail products, these types of exclusive groups have employed UAVs outfitted with night vision that cost under $30,000 each. As more and more law enforcement agencies find merit in this technology, costs are going to be driven down. In the not so far-off future, the currently used television helicopter will likely be replaced by a highflying, ultra-quiet law enforcement-issued UAV (Carafano, 2005). The militarys development of the Unmanned Aerial Vehicle (UAV) could significantly affect law enforcement. Using nanotechnology, the police UAVs would be the size of a small bird and stay aloft quietly for several hours. Using facial and voice recognition software, the devices could scan hundreds of yards in multiple directions, day or night, for known felons or wanted persons. One UAV could do the work of several plain-clothed officers in unmarked vehicles (Olligschlaeger, 2004). The new exoskeleton suit can be worn by an officer and uses nanotechnology and artificial muscles to allow the officer to run with minimal effort, over prolonged periods, at a speed of up to 20 mph. The suit also enables officers to lift up to four times their body weight (Olligschlaeger, 2004). The most interesting human and computer relationship could be the Mind Switch or Environmental Control Unit (ECU). Scientists at the University of Technology in Sydney have developed this extraordinary device. It could be described as a hands free remote control. The device responds to human brain waves that are brought on by thought. When the wearer of the device thinks about turning on the television, the device will remotely turn on the television (Rice, 2004). Augmented reality (AR) is a powerful new technology that is being developed. AR will provide situational awareness by projecting images into a persons real world vision. This device could aide law enforcement officers in several ways: (Cowper Buerger, 2003). Patrol car operator data and regional traffic management information on a heads-up display to make driving safer and more efficient, especially during pursuit and rapid response situations (2003). Identification Friend or Foe technology, worn by every police officer to reduce or eliminate friendly fire casualties by visually, audibly and/or haptically highlighting fellow police officers both on and off duty (2003). Display of officer location, activity and status information projected on a 3-dimensional map of the community (2003). The coordinated use of robots, UAVs and police officers managed through an AR network to enhance surveillance activities (2003). The use of realistic training scenarios to simulate dangerous police environments while blending real world equipment and fellow trainees into the scenario (2003). For some time now, computers have had the ability to process instructions from human verbal communication by means of voice analysis software. The next inherent step is voice interaction, comparable to that of an interactive robot. Robotic assistants are vastly intelligent computers that make use of a combination of emerging technologies: speech identification, vocalization synthesis, and amplified reality. The probabilities are to all intents and purposes endless. incorporating this device into an infinite number of public and restricted databases, employing data mining technology, and communicating with existing law enforcement communications systems (Computer Aided Dispatch, GPS guided locator systems, mobile data computers, etc.), will create an incredibly powerful and efficient information management system. A police officer using one of these devices in the field could accomplish many tasks at the same time by merely conversing with the device and dictating spoken commands (Cow per Buerger, 2003). Some additional technological advancement on the horizon include personal assistants, speech synthesis, wearable computers, data mining, liquid body armor, electronic clothing, artificial intelligence and crime forecasting (Olligschlaeger, 2004). Chapter 6: Agency Consolidation Research For centuries new there have agency consolidations, arguments over the idea, and endless discussions on the subject. The idea of consolidating over 17,000 law enforcement agencies throughout the U. S. into 1,000 regional agencies dates back to the 50s and was immediately rejected. Rural Americans were not pleased with the idea of losing local control. Rural communities also prefer to have very little government influence (Brown, 2009). Most small town police departments are comfortable with how their department is operated, the services they provide, and the local people whom they employ. They believe that a regional agency would bring uncertainty to their employment status and the nature of their jobs. The development of a regional agency would provide more services and better protection but this argument was also rejected due to the fact that small towns residents feel they do not need any more services or better protection. Nearly all small town communities feel their police departments are providing adequate service to the local people (Brown, 2009). Edward J. Tully (2002) believes there to be, seven main reasons why agency consolidation should at least be considered, they are listed as follows: Current regionalization efforts among jails have been successful. Las Vegas and Jacksonville have successfully merged police and sheriff offices into one metropolitan police force. Country wide based police forces have been successfully established in fast growing suburban counties (2002). Police related technology is extremely costly and the capabilities outweigh the need in most police departments. Computer technology is easily shared but the desire to share information is rare (2002). The U.S. is rapidly changing in terms of demographics, culture, and economy. Rural areas are losing population. The number of people approaching retirement age is increasing. The U.S. is more ethnically diverse than ever before. The majority of work has moved from blue collar to white collar. Crime rates have drastically increased in recent years. Our law enforcement officers have to be more sophisticated, more diverse, and more technologically proficient in order to deal effectively with todays criminals (2002). In this age of ceaseless litigation, the actions of one misguided police officer can result in liability to the entire agency. One judgment awarded against a rural police officer could bankrupt that department. A regional police agency would not directly deter misconduct but would spread the liability costs easing the financial strain (2002). Consolidation of police agencies would employ over 1500 officers and if properly trained and managed, could lead to a far more professional police force largely due to increased salaries and benefits, increased training, specialized services, and opportunities for promotion. The recruitment of highly qualified people would be considerably enhanced (2002). Police officers would have better resources to provide protection to citizens against criminal behavior, a higher quality of investigation, faster response times, and adequate man power for emergencies (2002). The nature of crime is changing. Cybercrimes, both national and international, such as terrorism, narcotics trafficking. These types of crime are beyond the available resource for small departments to investigate. Criminals realize this and use it to their advantage. Because of these reasons, it is necessary to involve the government in such criminal activity which reduces the sovereign power of state and local governments (2002). According to Edward J. Tully (2002), There is no evidence that the lack of regional police forces is causing any hardship on rural/suburban Americans. Evidence does show that this nations thousands of local police forces are getting the job done. The concept of bigger is better has proved true in our countries industries, commerce, schools, medical fields. Organizational growth allows for innovation, specialization, and increased productivity (Tully, 2002). According to OConnor (2009), The 10th Amendment of the United States Constitution reserves police powers to the states, and both federalism and tradition have resulted in a fragmented police structure at lower levels. Government, state, county, and local law enforcement agencies are constantly involved in consolidating or establishing new police departments. Massachusetts has abolished a number of county police agencies and assigned their police duties to state agencies. In Michigan, a state police agency is usually assigned to patrol just one city or county. Consolidation takes place when two or more police departments are combined into one, and commonly takes place in areas where two cities have grown closer together or one city has grown so large that it takes covers the majority of the county (OConnor, 2009). Chapter 7: Terrorism and Law Enforcement The Department of Homeland Security (DHS) was created by merging 22 separate agencies in one department whose primary mission is protecting the homeland. In order to be effective at fighting this countries war on terrorism, the DHS, along with local, state, regional, and national law enforcement agencies will all need to work together. What will be the role for police officers to play in the 21st Century; peace keepers, antiterrorism specialists, community outreach agents? One criminal-justice futurist, Gene Stephens, states, Better educated police officers with improved people skills and a stronger grasp on emerging technologies will be crucial to successful policing in the future. (2005) Even the most optimistic futuristic thinkers in the field are finding it difficult how police are going to be able to handle the increasing rate of terrorism and cybercrime and still be able to fight, the also increasing, crime on our countries streets. Futurists in the DHS feel that success can achieved with better education, training, and mentoring. These three things will give street cops the means to fit into the new law enforcement structure that is designed to fight and prevent terrorism (Stephens, 2005). The main challenge with this is that more than 90% of the police officers in the U.S. only have a high school diploma or GED. Police training in the U.S. takes three to four months to complete plus a little time performing on-the-job training. This short course in police training encompasses basic self defense, firing range, and field tactics. Very little time is spent on the skills needed to prevent crime and on improving community services. The members of the PFI agree that police officers in the U.S. need more education and focused training in order to be able to handle high-tech international crimes (Stephens, 2005). Attacks on our homeland are performed by criminals both inside and outside of this country. Terrorist tactics are being utilized by criminals that are U.S. citizens. These criminals are usually recruited gangs or major drug operation groups. These groups are recruited by terrorist groups to divert the police, usually through vigilant acts (Stephens, 2005). U.S. policing is being federalized in terms of policies, funding, direction, and control. The U.S. government, mainly the Office of Homeland Security, is forming alliances with police departments and private-sector corporations. The DHS is looking into adopting policing methods and standards of other countries that have been dealing with terrorism for many years, such as England, Ireland, France, and Israel. These countries also demand higher entrance and training standards for their police (Stephens, 2005). Law enforcement agencies incessantly have issues with the information privacy laws. Despite the fact that private individuals and criminals have been able to obtain and misuse the private and perso

Rock Music :: essays research papers

Rock is a popular form of music that has evolved over the past couple of decades starting in the 1950s until present day. Rock music has been know to be used as a form of expression over the years. Despite its sometimes negative and defiant lyrics, rock is a form of art that allows one to release his/her feelings through singing in an expressive tone. I personally don’t see problem with people expressing their emotions and that is in part why I dont’t agree with Richard Brookhiser in stating that,‘‘Rock is a popular culture that aims downward in terms of class and age instead of aiming up. Rather than aspiring, it desire.†   Ã‚  Ã‚  Ã‚  Ã‚  I feel that everyone should have a way of expressing themselves in any way or art form that they feel is necessary. Rock music is just a form of letting people let out their anger and agression and not hold it inside. I’d rather see our society release our troubles in a musical form rather than in a violent one. There are much more things to worry about than to stress over rock music bringing culture down.   Ã‚  Ã‚  Ã‚  Ã‚  In this day and age I strongly believe that Rock music helps more than it harms those who listen to it. Unlike Mr. Brookhiser’s views I see rock as being an outlet rather than a downfall. Rock music should be taken for nothing more than just a form of music. Whether its R&B, rap, jazz or rock music is just music and it shouldn’t be held accountable for peoples wrong doings. Rock, just like other types of music should be given the same freedoms and rights to be played and heard by those who want to listen.   Ã‚  Ã‚  Ã‚  Ã‚  People who have the same views as Mr. Brookhiser would be best to just not listen to Rock music at all and not comment on it. To say rock is responsible for aiming downward in class and age is putting too much responsibility on music rather than the people. We all have brains and the ability to distinguish from right and wrong. I understand that some of the lyrics that are said in rock music may be offensive but that should not make it be blamed for bringing down the society.   Ã‚  Ã‚  Ã‚  Ã‚  If you want to sit down and discuss whats bringing down the society, issues such as drugs and single parent families would be more relavent.

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

Report on Data Management Essay

Introduction HR data would need to be stored by all organisations due to either legal requirements or internal purposes. This report will uncover types of data and methods of storing them. The last segment of the report will cover legislations that affect HR data as ‘there is a substantial and complex amount of EU and UK legislation that has an impact upon the retention of personnel and other related records’(Retention of HR records, 2013) Why Collect HR Data HR data can be collected for various reasons in an organisation. There are two reasons listed below: Productivity: appraisals records are collected so  that managers can assess the productivity of their staff and team. It can also be useful for employees to know their potential within the team and can use it for their career progression. Legal Compliance: Payroll data would be important for the HM Revenue and Customs to calculate taxes whereas health and safety records can help the company to improve their environment and allow them to be compliant with the Health and Safety Act. Also certain data can be used as evidence in any legal proceedings that the company may have to face. Types of HR Data and how it supports HR ‘Monitoring records enables personnel to amend or reformulate policies and procedures.’(Personnel data and record keeping, 2011) Below are 2 types of data that HR collects:  Recruitment and Selection- records on staff turnover and vacancies can be important for HR as it informs them when and for which team to recruit for and also allows them to see the trend in each team depending on its staff turnover. This would also include appraisal records which would inform them if an employee or team needs training. Absence Data-the absence reports, complied from the absence data gives HR an indication of which department is suffering most from high absentees and allows them to rethink the working patterns. It also helps them to calculate the cost of absenteeism to the organisation. Data Storage and its Benefits Data can be stored in several methods. However, below are 2 key methods which can be used along with their benefits. 1. Manual / Paper based- keeping records on paper in a filing cabinet Files cannot be destroyed with any virus Information can be accessed without any password restrictions Members do not need to be PC literate to find data 2. Computerised filing More than one user can access the information at the same time Large volumes of data can be stored and accessed easily  Data can be used to compile reports and identify trends with the latest programmes on computer Most companies prefer their records to be stored electronically as it is efficient and easily accessible. However, there are  certain companies which use both methods as certain records do not need to be stored for a longer period of time, hence can be filed away in cabinets. Essential UK legislations relating to recording, storing and accessing HR data There are several legislations that affect the retention of HR data. Below are two such legislations. Data Protection Act 1998 (DPA) DPA applies to most HR records, whether held in paper or on computer. DPA controls how personal information of living individuals is used by organisations, businesses or the government. It came into force on March 2000. There are 8 data protection principles the data controller needs to comply to in order to handle data correctly: 1. ‘adequate, relevant and not excessive 2. fairly and lawfully processed 3. processed for limited purposes 4. accurate 5. not kept for longer than is necessary 6. processed in line with your rights 7. secure 8. not transferred outside EU without adequate protection’ (Employment Law FAQ, 2013) Every company that processes personal information must be registered with the Information Commissioner’s Office (ICO), unless they are exempt. The ICO, which is UK’s independent supervisory authority, ensures that the DPA as well as other data protection/retention legislations are followed by organisations and it can prosecute them for not doing so. Freedom of Information Act 2000 (FOI) The FOI came into force on January 2005. It gives the public a right of access to all types of recorded information held by public authorities, however there are few exceptions to these right as not all personal records can be obtained by public, such records can be requested under the DPA. Government departments, local authorities, the NHS, state schools and police forces are few of the public authorities. Conclusion This report explains that recording and storing data is very important. Every  company has a different method and reason of storing data; however, handling data correctly is important for all. There are several legislations that can affect the data retention and not complying with these legislations can have an adverse effect on the company’s reputation. Reference List CIPD, 2013.Retention of HR Records.[online] Available at: www.cipd.co.uk/hr-resources/factsheets [Accessed 13 June 2014] ACAS, 2011. Personnel data and record keeping.[online] Available at: www.acas.org.uk [Accessed 12 June 2014] CIPD 2013. DP04: What is data protection and what are the eight data protection principles?.[online] Available at: www.cipd.co.uk [Accessed 17 June 2014] Activity 2 Analysing Absence Data in Examinations Team Introduction The report includes findings and analysis of different reasons of absence within an Examinations Team from May-December in 2013. The final segment of the report concludes the analysis along with recommendations to overcome the core reasons of absence. Absence Level in Examinations Team There are two apparent findings from the graph (data in appendix 1), the high levels of absence from May-June due to stress and from October- December due to viral problems: May-June: due to peak season of exams, the examinations team is required to do ample preparations from planning, supervising and marking exams to attending board meetings. This therefore, becomes very stressful for the team as ‘the most common cause of stress†¦is workload’ (Barometer of HR Trends and Prospects, 2013) and as each person is only trained in their individual role there are issues of ‘presenteeism’. October-December: during this season many people fall sick due to bad weather. However, the outbreak of the Norovirus in 2013 could also be the reason for the viral problems to increase. Also, due to Christmas parties in December it further causes the virus to spread from contaminated food. Conclusion The study indicates that stress and viral issues were two implications the examinations team suffered from in 2013.Stress is a common issue in several workplaces as mentioned in the Absence Management report by CIPD and it can be costly. To overcome the issue, two possible recommendations are: Stress- 1. Hire temporary staff during busy period 2. Train team members to share workload and prevent presenteeism, where employees feel forced to come into work. Viral Problems- 1. Give free flu vaccination to employees 2. Communicate awareness regarding the virus Appendix 1: Number of Employees Absent by Reasons in 2013 (a) Musculoskeletal- back, neck and other muscle pain (b) Ear, Nose, Dental pain and skin disorder Reference List BPP. (2013).Appendix 1 of Number of Employees Absent by Reasons in 2013. London: BPP CIPD, 2013.barometer of HR trends and prospects 2013.[online] Available at: www.cipd.co.uk/hr-resources/survey-reports[Accessed 18June 2014]