HRM Essay Example | Topics and Well Written Essays - 1000 words - 2

HRM - Essay Example Both organizations are based in Yorkshire and provide financial services. In order to recruit the right workforce, both organizations are in direct competition with each other. For this purpose, both of them recruit graduates for their trainee programs. In order to place them on management or professional posts, both organizations have training programs. For the recruitment of graduates, both Goldstan and Hodell use visits and advertisements within universities in Yorkshire. Whereas, Goldstan further utilizes local newspapers and recruitment consultants in this regard, while Hodell utilizes professional journals and it also takes help from advertising. The Goldstan asks it applicants to submit the application form that is filled in by hand, not type written or printed. On the contrary, Hodell has adopted a very catchy technique to attract the graduates since the 1970’s. The company provides brochures to graduates that talk about the advantages of working with the organization and the prestige of the company. It requires Curriculum Vitae of the candidate with a covering letter. The selection process at Goldstan undergoes a single panel interview. The Head of the Department or Human Resource Manager conducts the interview where the recruit is required. The interviewee is asked to give a fifteen minutes presentation on a specific issue following the interview. If the candidate is found satisfactory with his performance and capabilities, then the employment offers are made. On the other hand, Hodell holds two interviews with the candidates. The first interview is conducted by the Human Resource Manager while the second one is conducted by the Head of the Department or with the senior employee / staff member of the department where the vacancy is available. Following successful interviews, the candidate is then supposed to complete personality and intelligence tests. Once the candidate passes these

Suggest me a good topic Term Paper Example | Topics and Well Written Essays - 2000 words

Suggest me a good topic - Term Paper Example Subway Restaurant has been its major strength that has seen it occupy an appropriate competitive advantage in the food industry. The restaurant offers fast food services such as; turkey breast, roasted beef, steak, cold cut combo, cheese, subway melt et cetera. Moreover, the restaurant provides different types of beverages to its customers. Description of the Products and Services The products offered by the Wali subway restaurant are of good quality and standards. For instance; the mouth-watering turkey and roasted beef salad with raspberry vinaigrette from exclusively selected recipes of canola oil, diced red onions and avocado, cooked and chopped turkey breast, reduced fat feta cheese perfectly crushed, walnuts, and arugula. The mixture hysterically prepared and spray backed to give a great taste. For the raspberry vinaigrette the combined ingredients of balsamic vinegar, canola oil, lemon juice, Dijon mustard, raspberry jam, fresh ground black pepper and salt to taste placed into a medium-sized bowl the whisked thoroughly until the dressing is smooth enough and the jam is properly dissolved. The restaurant also serves Monterey jack Taquitos and backed shredded beef, a meal that is children friendly and very tasty. To make this meal the chef uses high quality ingredients of chill powder garlic powder, lime juice, adobe sauce with little chili pepper, chopped yellow and red bell pepper, cooked and shredded roast beef, boneless blade roast, and canola cooking spray. The menu offered by the Wali subway restaurant makes an effort to create a healthy diet by utilizing clean and up to standard products in a clean environment. The restaurant also takes into consideration a special group of its customers such as the vegetarians by offering old-fashioned food strictly for vegetarians. Variety of this special menu include kuja, matar, badem, and gobhi that are mostly served with mint chutney, tamarind chutney, paneer, mixed vegetable pickle, sauteed smash of sweet pum pkin, and fenugreek. The special drinks offered in this place include sweet lassi that is often served with kulhars. In order to reach out for the customers and for the convenience the customers, Wali restaurant offers an online menu and online services where customers can place orders and make inquiries in the day's specialty. The restaurant also offers room booking services online. Opportunities for the products Selection of products and services offered by the Wali restaurant involves an appropriate identification and mobilization of resources after undertaking economic and social facets analysis. For this reason, Wali restaurant management has to take part fully in the interaction with their potential customers in order to get acquainted with their social and economic conditions. Those customers, who participated, provided the human resource of Wali restaurant with important information and referrals on the products and services that could be offered by the restaurant. These inf ormation and ideas are then supplemented with details obtained from assessment of the area around Manassas, Virginia where the restaurant was located. Reintegration of the already existing restaurants and the products and services they offered was also done. With this information the Wali restaurant decided to offer a variety of products including turkey breast, roasted beef, steak, cold cut combo, cheese, subway melt et cetera since Virginia was multi-ethnic with diverse culture. The management also considered

The Process Of Brewing Beer

The Process Of Brewing Beer Beer is the worlds ancient and most generally consumed alcoholic beverage and the third most popular drink overall after water and tea. The word beer comes from the Latin word bibere, meaning to drink. It is produced by the brewing and fermentation of starches, mainly derived from cereal grains predominantly malted barley, although wheat, maize (corn), and rice are widely used. Maximum beer is flavored with hops, which enhance bitterness and also acts as a natural preservative, nevertheless other flavorings such as herbs or fruit may rarely be included. The chemical equation beneath sum up to form beer: C6H12O6 à ¢Ã¢â‚¬  Ã¢â‚¬â„¢ 2 CH3CH2OH + 2 CO2 History The history of beer making is a story of creation, dedication and honor. While wine making is a very old art that probably invented with the Phoenicians some 2,600 years ago, the art of beer making is said to be older than that of farming. Around 10,000 and 15,000 years ago, women were known to collect wild grain and utilize it to make beer by fermentation which would dependent on spontaneous air borne yeast. Along the birth of civilization correspondingly originated the skilled beer brewing. The Sumerians in around 6,000 years old developed different varieties by soaking barley bread in water. Around 4000 years ago seal, of a Goddess of brewing Hymn to Ninkasi was found in Sumerians period. In which hymn is also a process for making beer. The Babylonians around 2000 years later brought forth several further varieties. Babylonians also distributed and exported the beer and above all, there were laws on the beer. For example the king used to decide the quantity of beer that a person can consume. Beer in that was also sold on barter system. After Babylonians, Egyptians carried on the custom of beer brewing. They also developed many different varieties of beer by adding dates and other fruits. Greeks and Romans carried the tradition of beer brewing as the capture on the Egyptians. In Roman Empire beer was drank in some parts where there was no wine available. Beer of that time could not be s tored and there was no yeast introduced yet. As the culture of barley spread in in north and west, the beer brewing also grabbed attention. After that period, slowly beer brewing reached the entire world and also developed because of trade, wars, and modernization of world. Process of beer brewing The simplest way to describe the process of beer making is fermentation of Malted barley, hops, water and yeast. But sometimes to give beer a specific flavor, ingredients like wheat, maize (corn), rice, fruit, dry fruit and spices are introduced and this dependence on the region where the beer is produced. If the process is considered in detail beer brewing has different stages like malting, milling, mashing, brewing, cooling, fermentation which is followed by maturation, filtering (finishing) and packaging. What is barley? Barley is a towering grass and on the top of the stalk it has got seeds. Barley is not used for baking because it does not form good dough nevertheless it is good for brewing beer. Barley is available numerous strains and ranges that eventually influence the flavor of the beer. Malting Malting is the first step of beer making. In this process barley is prepared to be used in brewing. Barley cannot be used directly to produce the wert since the starch in its floury kernels is insoluble. As the process of malting progress it exposes the starches present in the barley. The first step is Steeping in malting in which grain is soaked in a barrel of water for approximately 40 hours. The second step is germination of the barley grain and for the grain to germinate it is spread on the flat surface in the sprouting room for roughly three to five days where the formation of rootlets instigated. The germination process produces the enzymes by breaking down. At the end of the process, the starch become soft but the enzymes is not in progress of transforming the starch into sugar. Now the barley grain is knows as green malt. Kilning The next process is kilning. Germination is stopped by drying the green malt on metal shelves in the oven (kiln house) at 50 ° C. The temperature is then raised up to 85 °C to make a light malt, or more upper for a dark malt. It is essential that temperature should be raised slowly for the reason that the enzymes in the grain are not ruined. The malted shoots are separated and then dried malts are stored in grain storage. Even though malted barley is the chief ingredient, unmalted corn, rice or wheat are added sometimes, to create diverse beer flavors in this malting process. At the end of kilning, the product obtained malt. The flavor, color and aroma of the beer would be different as there are variations in the ways of malting the barley. Milling Next process is milling and as the name suggest it is the cracking of the grain which the brewer chooses for the particular batch of beer. Milling the grain allows it to absorb the water which would eventually be mixed in order to let water to extract sugars from the malt. Mashing The following step to milling is Mashing. Mashing is the process of making the finest ground malt into a sweet syrupy fluid. Mashing transforms the starches into sugars that can be fermented and which are released throughout the malting period. The milled grains are released into warm water then are slowly heated to about 75 ° C in a big cooking container so called as mash tun. In this mash tun, the grain and heated water forms a cereal mash which dissolves the starch into the water, converting it into sugar mostly maltose. Water itself is a key ingredient in beer because water is an important part of the brewing process. This water which contains sugar is then strained through the bottom of the mash and is now entitled as wert. Brewing Brewing is one of the most an important process in beer making. The finished grains are drained out and wert are ready for boiling and this consist of several technical and chemical reactions. During this stage, vital judgments are made for the flavor, color and aroma of the beer. Different kinds of hops are added at different times throughout the boil process for either bitterness or aroma and also for preserve it. The wert is boiled for 1 or 2 hours to sterilize and concentrate it and extract the necessary essence from the hops. Cooling Cooling is the next step. The wert is shifted quickly from the brew kettle to filter out the hops through a method, and then it is taken to a heat exchanger for cooled. It is essential to rapidly cool wert to a point where yeast can be securely added, as yeast doesnt grow in high heat. Fermentation Fermentation is a vital step in brewing. The brewer now selects a type of yeast and adds it to the fermentation tank. This is where the real magic of brewing happens when the yeast, eats the sugar in the wert and turns it into alcohol and carbon dioxide. This process takes ten days. The wort finally becomes beer. Maturation Maturation which is also known as racking. The beer has now been brewed, but it can still be improved through maturation. Throughout this stage, the brewer transfers and shelves the beer into a new tank known as the conditioning tank. The brewer then just waits for the beer aging process to complete and thus its flavor also ripens. The liquid clarifies as yeast and other particles settle. Secondary fermentation saturates the beer with carbon dioxide. Finishing Finishing is the end of the brewing process. Here the beer is filtered and carbonated. Additional filtering contributes to the sparkling clarity of beer. The beer is transformed to a holding tank where it kept till it is bottled, canned or put into kegs. Filling systems ensure that air does not come into contact with the beer and is not trapped inside the container. Chemistry of beer What are the different flavor and color of beer and from where does the beer get them? There are many forms of malts. This include pale malts with are dried at a low temperature. Therefore it produces a malt that give the beer a pale golden color and a slightly bready flavor such as a pilsner. (PILSENER: A pale lager with strong flavor of hops; first brewed in the Bohemian town of Pilsen.). Mild ale malts are kilned to a bit higher temperature which produces a pale malt that gives the beer a deeper color and slightly toasted biscuit flavors. Many English ales go for this malt process. Vienna and Munich malts are simmered and lightly kilned thus helps some of the starch to convert more sugar which give the beer an orangey amber color and the classic toffees taste, furthermore nutty flavors of Oktoberfest beer and other Bavarian, German specialties. The highest temperatures are used to acquire very flavorful and aromatic malts. Caramel and Crystal malts are slowly boil until all of their starches are converted into sugars then they are kilned until they caramelize and th is caramel flavored malt gives the beer a reddish-amber color, rich flavors. Kiln the barley longer and at higher temperatures and the darker and roastier the beer will be. Just like higher roasted coffee beans. This will give the beer darker color and chocolate, coffee and espresso-like flavors. What does yeast do in beer? Each brewery has its own strains of yeast, and it is these that largely determine the character of the beer. In some yeast varieties, the cells rise to the top at the end of fermentation, and are then skimmed off. This is called top fermentation, and ales are brewed in this way. When at the end of fermentation the yeast cells sink to the bottom, the process is known as bottom fermentation, used for lager or pils. When ales are brewed yeast commonly used is known as Saccharomyces cerevisia and for lager and pils Saccharomyces calsbergensis. Some special Belgian beers use a third method where fermentation relies on spontaneous action by airborne yeasts. Alcohol percentages of beer worldwide Alcohol percentages vary by country to country. As British ale beer contains average alcohol about 4.4% whereas Belgian beers tend to have average alcohol of about 8%. In India there are 3 common types of beer which include lager beer which consist of around 4% of alcohol, about 8% is premium beer and super strong beer consist of about 15%. The strongest beer sold in Britain was Dogfish Heads which had 21% alcohol in 2003. In Japan in 2005, the Hakusekikan Beer Restaurant sold an eisbock, believed that it had 28% alcohol. The strongest beers sold in 2009 Scotlands Brew Dog Brewing released Tactical Nuclear Penguin, claiming the title of worlds strongest beer at which had 32%. Recently for Brew Dog, Schorschbrà ¤u Brewing from Germany released Schorschbock in January 2010 which consists of about 40% alcohol. Infected beer The diacetyl, light struck, oxidation, esters, phenols, over or under carbonation, acidic are some infection that beer can get. Diacetyl is instigated when there is not sufficient oxygen in wort and high temperature initial fermentation. Light struck is affect the beer when the beer is exposed to light. When air is bonded with beer oxidation takes place and the beer is spoiled which gives the beer a cardboard or paper smell. When Banana, apple flavor comes from beer the beer is affected by esters. Over or under carbonation is caused when the bottles are not sealed properly moreover this can also happen when the yeast added to the beer is wild. When bacterias like lactobacillus and bacillus attack the beer the beer is infected and this is seen when the beer gets acidic. Conclusion

Grapes of Wrath Essay: Moving From Me to We -- Grapes Wrath essays

Moving From Me to We in The Grapes of Wrath      The play, The Grapes of Wrath, explores how the Joad family adapts to a new reality, how their concern changes from their own family and problems, to other families and their difficulties, until their concern includes all of the migrants and the larger problems of unemployment and prejudice. The Joad family’s journey to California results in the breakup of their family. The very first cause of the breakup of the individual family was with the loss of their land. The Joad family had lived there for many generations and had very strong ties to the land. Losing their land was equivalent to losing their family history. This is expressed by â€Å"She puts them in her pocket, closes the box, stands and with resignation tosses the box on the fire†(Galati 21). It is very evident that ma is reluctant to let her past go. On their journey they lose their first family member, Grampa Joad. This shows that there is a strong connection between a man and his home. Grampa’s great longing for his homeland ultimately resulted in his death.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The shift from individual thinking to wide spread thinking is most directly seen in the actions of Tom Joad. In the beginning of the play Tom is mainly concerned for his own welfare. He wants to make up for all the things that he missed while in prison. Later on in the play he is more concerned with the welfare of the people. Then finally his thinking had shifted to trying to do what is best for all the migrant people by helping them organize into striking. Casy also had foreseen trouble along the way, but the family still pursued west. When Casy states â€Å"I’m all worried up. I been watc... ...any other people in their situation. In the end, Ma realizes that the family doesn’t come first anymore but anybody who just needs help should come first. Everyone had a shift in thinking - sometimes it takes a tragedy to make you see things in a new and different way.      1.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   You should include a conclusion paragraph in your paper.   A conclusion re-caps on what you have discussed in your paper.   In one sentence each describe what you wrote in each paragraph.   Then combine all of those thoughts into one sentence to end your paper.   The conclusion paragraph begins specifically with each theme but broadens, by the end, to include every theme. 2.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Also always be sure to cite each quote.   Make sure that you have the author and the page number every time.    Grapes of Wrath Essay: Moving From Me to We -- Grapes Wrath essays Moving From Me to We in The Grapes of Wrath      The play, The Grapes of Wrath, explores how the Joad family adapts to a new reality, how their concern changes from their own family and problems, to other families and their difficulties, until their concern includes all of the migrants and the larger problems of unemployment and prejudice. The Joad family’s journey to California results in the breakup of their family. The very first cause of the breakup of the individual family was with the loss of their land. The Joad family had lived there for many generations and had very strong ties to the land. Losing their land was equivalent to losing their family history. This is expressed by â€Å"She puts them in her pocket, closes the box, stands and with resignation tosses the box on the fire†(Galati 21). It is very evident that ma is reluctant to let her past go. On their journey they lose their first family member, Grampa Joad. This shows that there is a strong connection between a man and his home. Grampa’s great longing for his homeland ultimately resulted in his death.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The shift from individual thinking to wide spread thinking is most directly seen in the actions of Tom Joad. In the beginning of the play Tom is mainly concerned for his own welfare. He wants to make up for all the things that he missed while in prison. Later on in the play he is more concerned with the welfare of the people. Then finally his thinking had shifted to trying to do what is best for all the migrant people by helping them organize into striking. Casy also had foreseen trouble along the way, but the family still pursued west. When Casy states â€Å"I’m all worried up. I been watc... ...any other people in their situation. In the end, Ma realizes that the family doesn’t come first anymore but anybody who just needs help should come first. Everyone had a shift in thinking - sometimes it takes a tragedy to make you see things in a new and different way.      1.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   You should include a conclusion paragraph in your paper.   A conclusion re-caps on what you have discussed in your paper.   In one sentence each describe what you wrote in each paragraph.   Then combine all of those thoughts into one sentence to end your paper.   The conclusion paragraph begins specifically with each theme but broadens, by the end, to include every theme. 2.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Also always be sure to cite each quote.   Make sure that you have the author and the page number every time.   

Should Any Vaccines Be Required for Children?

SHOULD ANY VACCINES BE REQUIRED FOR CHILDREN? SHOULD ANY VACCINES BE REQUIRED FOR CHILDREN? Most Vaccinations protect people from certain diseases which can make them sick, disabled or can in some cases even kill them. The vaccination helps boosts people’s body’s defence system, also known as the immune system. Vaccines create immunity which protects people from infections without causing suffering of the disease itself. Vaccines can also be called shots, immunizations or needles. (Smith, n. d. ) Most vaccines contain a disease that is either very weak or dead.However, they do not contain a type of disease that can make people sick. Some vaccines do not contain any germs at all. Putting that little bit of disease inside the body makes the body’s defence system produce antibodies which fight off that kind of disease. The body makes antibodies in two different ways, one way is by getting the disease or the vaccine, however getting the vaccine is much safer when mak ing the antibodies without having the risk of become disabled or maybe dying. The antibodies stay with the human for a very long period of time.These antibodies remember how to fight off a certain disease, which means that if the germ causes that disease enters the body at a later date, the body’s defence system will automatically know how to fight it off because of the antibodies. Most of the time the body’s defence system will remember how to fight the disease/germ for the rest of the human’s life. However, sometimes defence systems need a little reminder, a booster shot to remind the defence system how to fight off the disease/germ. In the first two years of a baby’s life they are given several different vaccines to protect them.The table below shows each vaccine that a baby gets all the way up to six years old. The table also shows how many doses a baby’s get of each vaccine and when they are given them. The majority of babies do not have side effects from vaccines, however if they do they are normally nothing serious. ‘Some vaccines may cause low fever, a rash or soreness at the spot where the shot was given. Although the body may seem like it is getting sick after the vaccination, these reactions are good signs that the immune system is working and learning to fight off infections’ ((CDC), n. . ). In rare cases, a baby may have a serious allergic reaction to a vaccine. Signs of a serious allergic reaction include: * Breathing problems and wheezing * Swelling of the throat * Being hoarse * Weakness * Dizziness * Fast heartbeat * Hives * Paleness ((CDC), n. d. ) Vaccinations are quick and highly effective. Once a child has been vaccinated against a disease, their body can then fight that disease more effectively if they come into contact with it. If a child is not vaccinated they can have an increased risk of catching the illness. (CDC), n. d. ) Age| Vaccine| Information| Problems| 2 Months old| 5-in-1 (DTaP/ IPV/Hib)| ‘The 5-in-1 (DTaP/IPV/Hib) vaccine is used to protect against separate disease which include: Diphtheria, Tetanus, Whooping cough, Polio and Haemophilus influenza type b’. (NHS, n. d. )| ‘Diphtheria: Can be a highly contagious infection that generally affects the throat and nose and less commonly, it can affect the skin. The bacteria spreads when an infected person coughs or sneezes and their saliva enter another person’s nose or mouth.The symptoms of Diphtheria include: * High temperature (fever) * Sore throat * Breathing difficultiesTetanus: Tetanus is a very serious infection but is also very rare. It is caused by bacteria. It normally occurs when an open wound becomes contaminated. If it is not treated it may lead to complications which can end up being fatal. Tetanus is caused by a type of bacteria called Clostridium tentai. This bacteria can live in many different substances which include: * Soil * House dust * Animal and human waste (manure )Whooping Cough: Whooping cough is a highly contagious bacterial infection of the lungs and airways.The conditions usually begin with a continuing dry and irritating cough which then progresses into intense coughing’. ‘This is then followed by a distinctive whooping noise, which is how the condition gets its name. Symptoms include: * Runny or blocked nose * Sneezing * Watering eyes * Dry, irritating cough * Sore throat * Raised temperature * Feeling generally unwell. Polio: Polio is a highly contagious viral infection that can lead to paralysis, breathing problems and even death.Although polio can cause paralysis and death the vast majority of people who are infected with the polio do not become sick and are never aware they’ve been infected with polio. Signs and Symptoms will generally last one to ten days, these include: * Fever * Sore Throat * Headache * Vomiting * Fatigue * Back pain or stiffness * Neck or stiffness * Pain or stiffness in arms or legs * Muscl e spasms or tendernessHaemophilus influenza type b’: This is a bacterial infection that can cause a number of serious illnesses such as pneumonia or meningitis, especially in young children.Hib can cause any of the following infections: * Meningitis * Pneumonia * Pericarditis * Epiglottitis * Septic arthritis * CellulitisSome of these infections can lead to blood poisoning, which can be fatal. Symptoms of this include: * Fever * Lethargy * Vomiting * Stiff neck(NHS, n. d. )| 2 Months old| Pneumococcal (PCV) vaccine| ‘The Pneumococcal vaccine is used to protect infants and young children against the caused by a bacterium. There are currently three PCV vaccines available. ’ (Wikipedia, n. d. | The Pneumococcal disease is caused by a bacterium, which can lead to serious infections in the lungs, blood and brain. You can catch the bacteria from people who cough or sneeze around you. Even if you get good medical care pneumonia can be deadly. The disease is hard to trea t because the bacterium becomes resistant to antibiotics. Some common symptoms include: * A high temperature * Chills * Sweats * Aches and pains * Headache * A general sense of feeling unwell Other symptoms may include: * Nausea * Vomiting * Tiredness(NHS, n. d. | 3 months old| 5-in-1 (DTap/IPV/Hib) Vaccine; Second Dose| ‘This vaccine is used to protect against separate diseases: Diphtheria, Tetanus, and Whooping cough, Polio and Haemophilus influenza type b. ’ This vaccine is a booster because your memory cells may need a reminder to protect you from the disease. (NHS, n. d. )| Refer to: 2 months- 5-in-1 (DTap/IPV/Hib) Vaccine. If the second dose of the vaccination is not taken then the patient will not be protected from things such as Tetanus and Whooping cough because they are not taking every little bit of the vaccination course which they need to protect them in the future. 3 months old| Meningitis C| ‘The Meningitis C vaccine is conjugate vaccine against Gro up C meningitis. The Meningitis C vaccine was introduced in 1999 and in Ireland in 2000. It provides excellent protection against meningitis caused by Group C’. (Meningitiswise, n. d. )| Meningococcal disease is caused from a bacterial infection which is caused by an organism called Neisseria meningitides. This bacterium can cause an epidemic disease. The disease is transmitted through droplets or coughing and sneezing, or more directly through kissing.For the disease to go from person to person there has to be either frequent contact or prolonged contact. Signs and Symptoms of Meningitis C:Early Stages of infection: * Fever * Stiff neck * Severe headache * Pain in back or joints * Vomiting * A high pitched, moaning cry for babies * Difficult to wake (babies) * Pale of blotchy skin (babies)Later stages on infection: * Dislike of bright lights (photophobia) * Reduced awareness/drowsiness (can lead to a coma) * Bruise-like rash that does not fade under pressure. Meningitis is v ery serious and must be treated straight away. (1999, n. d. | 4 months old| 5-in-1 (DTap/IPV/Hib) Vaccine; Third Dose| ‘This vaccine is used to protect against separate disease: Diphtheria, Tetanus, Whooping cough, Polio and Haemophilus influenza type b. ’ This vaccine is a booster because your memory cells may need a reminder to protect you from the disease. (NHS, n. d. )| Refer to: 3 months- 5-in-1 (DTap/IPV/Hib) Vaccine. If the third dose of this vaccination is not taken then the patient will not be protected from things such as Tetanus and Whooping cough because they are not taking every little bit of the vaccination which they need to protect them in the future. 4 months old| Pneumococcal (PCV) vaccine; Second Dose| ‘This vaccine is used to protect infants and young children against the bacterium. There are currently three PCV vaccines available’. This vaccine is a booster because your memory cells may need a reminder to protect you from the disease. ( Wikipedia, n. d. )| Refer to: 2 months- Pneumococcal (PCV) vaccine. If the second dose of this vaccination is not taken then the patient will not be protected from the disease. They will not be protected because they are not taking the full course of the vaccination. 4 months old| Meningitis C; Second Dose| ‘The Meningitis C vaccine is conjugate vaccine against Group C meningitis’. (Meningitiswise, n. d. ). The second dose is given as a booster vaccine; this is given to remind your memory cells that they need to protect you for the disease. | Refer to: 3 months- Meningitis C. if the second dose of this vaccination is not taken then the patient will not be protected from the disease. They will not be protected because they are not taking the full course of the vaccination. Between 12 and 13 months old| Hib/Men C booster| ‘This vaccine helps boosts children’s protection against two different disease, these are Haemophilus and Meningitis C infections. They are both serious infections and can both cause blood poisoning’. (NHS, n. d. )| This vaccination is given as a single injection which basically boosts the babies’ protection against Haemophilus influenza type b and meningitis C. (NHS, n. d. )| Between 12 and 13 months old| Measles, mumps and rubella (MMR) Vaccine| ‘Measles, Mumps and Rubella are highly infectious conditions.The MMR vaccine contains weakened versions of live measles, mumps and rubella viruses. The vaccine works by triggering the immune system to produce antibodies against measles, mumps and rubella’. (NHS, n. d. )| The first MMR vaccine is given as a single injection to babies as part of their routine vaccinations, usually within a month of their first birthday. The MMR vaccine can sometimes be given earlier than their first birthday if the baby has been exposed to the measles virus.Signs and Symptoms: * Small rash of bruise-like spots * Small chance of seizures * High temperature * Loss of ap petite * General feeling of being unwell * Swelling of the glands in the cheek, neck or under the jaw. (NHS, n. d. )| Between 12 and 13 months old| Pneumococcal (PCV) vaccine; Third dose| ‘This vaccine is used to protect infants and young children against the bacterium. There are currently three PCV vaccines available. ’ This vaccine is a booster because your memory cells may need a reminder to protect you from the disease. (Wikipedia, n. d. | Refer to: 4 months- Pneumococcal (PCV) vaccine. If the second dose of this vaccination is not taken then the patient will not be protected from the disease. They will not be protected because they are not taking the full course of the vaccination. | 3 years and 4 months old, or soon after| Measles, mumps and rubella (MMR) Vaccine; second dose| Measles, Mumps and Rubella are highly infectious conditions. The MMR vaccine contains weakened versions of live measles, mumps and rubella viruses. The vaccine works by triggering the immune system to produce antibodies against measles, mumps and rubella’ (NHS, n. . ). The second dose is given as a booster vaccine; this is given to remind your memory cells that they need to protect you for the disease. | Refer to: between 12 and 13 months. Measles, mumps and rubella vaccination. If this second dose is not taken then the baby will not be protected from this disease, this is because they have not taken the full course of the vaccination. | 3 years and 4 months old, or soon after| 4-in-1 (DTaP/IPV) pre-school booster| ‘The DTaP/IPV vaccine boosts children’s protection against four serious childhood diseases; these are Diphtheria, Tetanus, Whooping cough and Polio.The vaccine is recommended for children about three years and four months old. There are two vaccines available, one contains higher-strength Diphtheria and the other contains lower-strength Diphtheria. (NHS, n. d. )| This vaccine is given to three-year-old children to boost their protection a gainst: * Diphtheria * Tetanus * Whooping cough * PolioChildren are routinely vaccinated against these illnesses as babies. This booster increases their immunity even further. (NHS, n. d. )| (NHS, n. d. : I have chosen to use this table from the NHS website because I think that the information that is given useful. It is also reliable because it has come from a trustworthy website. Pro’s and Con’s of Vaccinations: Vaccines can impose some risks. It is important that parents consider the benefits and risks of vaccines when they are decided whether or not they should have their child/children vaccinated. Many people need to realise that when considering vaccination, one of the most important questions asked is ‘does the risk of the disease over weigh the risk of the vaccination? This does include the risk of being exposed to certain diseases. There are about 12 diseases that are considered serious and have been vaccinated against, these include: Measles, Mumps, Rub ella, Diphtheria, Tetanus, Whooping Cough, Polio, Hepatitis A and B, Pneumococcal disease, chicken pox and HIB disease. The vaccinations that are given for these diseases help play a large role in lowering the risk of exposure to the diseases. (2000, n. d. ) This graph is showing that since 1989 up to 2000 the number of ases of Mumps has decreased dramatically and also it is showing that a lot more people are having the MMR vaccination. We know this because of the number of notifications for mumps has decreased dramatically. There are many more pros than cons I think when it comes to vaccinations. These include your child will be safe during the first years of his/her life. Mortality can be prevented even in dangerous and life threatening diseases, when you child catches diseases now or later on in life, he’ll/she’ll likely to have it milder than you would expect.Contagious diseases can be prevented especially if your child is in his/her pre-school years and the risk o f complications are lower than those who do not go through with vaccinations. Also there will be less health issues by this I mean disability, there will be less cost on the society via disability benefits but also there will be a better life for individuals. Most parents today haven’t seen a child suffer with an infection such as Tetanus or Polio so it is very easy for them to say that vaccinations against such illnesses are not necessary.However the vaccination routine is the only reason why such infections have been nearly completely wiped out in the UK. If a certain number of children do not have the vaccinations then it will not be long before the diseases appear again. Vaccinations are a very powerful preventative tool. They work by exposing the immune system to something that resembles the disease. The body’s own immune system responds and is then able to build up some sort of immunity that protects us in the case of infection by a live virus.The effectiveness o f vaccines is proved by the fact that smallpox has been completely wiped out, and the incidence of other serious illnesses has lowered a lot since the introduction of vaccinations. | Maximum number of Annual Cases in Pre-Vaccine Era (Year)| Number of cases in 2009| Percent Change| Diphtheria| 12,641 (1899)| 0| -100. 00| Measles| 52,866 (1952)| 2| -99. 99| Mumps| 18,709 (1957)| 13| -99. 93| Pertussis| 13,333 (1937)| 371| -97. 22| Polio| 3,950 (1955)| 0| -100. 00| Rubella| 34,148 (1943)| 1| -99. 9| Tetanus| 45 (1925)| 0| -100. 00| HIB| 147 (1987)| 1| -99. 32| Chickenpox| 23,768 (1953)| 2,219| -90. 66| (LaMorte, n. d. ) This table is showing how vaccinations have helped the number of cases of disease and infections. I think this source is reliable because it clearly shows that number of cases for each disease has dropped dramatically because more and more are having the vaccinations. However everything has two sides. No vaccination is 100% safe, and there are always certain risks invol ved in vaccinations.If people are not vaccinated there is a high chance that the risk of disease will increase dramatically because people aren’t protecting and preventing themselves from specific diseases and infections. Also there will be a major increase in health risk, by this I mean that there will be a lot more children with a weaker immune system which will them lead to an increase in diseases and infections which can also in some severe cases cause death, this is because the children have not been vaccinated from those certain diseases so their immune systems do not know how to fight them off or at least protect them from it.If children are not vaccinated then the country has less control over epidemics and pandemics because the children that are not being vaccinated can spread the disease and infections rapidly to other people which means that more people that are not being vaccinated are going to get the disease or infection. (safety, n. d. ) This graph is showing t hat there has been an increase in the confirmed cases of measles due to parents no longer wanting to vaccinate there babies/children due to the risk factors. Alternatives to vaccinations Parents face many tough decisions when it comes to vaccines.There is an alternative called Homeoprophylaxis (HP) or homeopathic immunization. It has been around for over 200 years, and recent studies show its effectiveness in epidemics, and its effectiveness at preventing childhood diseases (not injuring the child). Homeoprophylaxis is a dilute preparation from a disease product i. e. from the sputum of n individual with the disease, or in the case of influenzium (homeopathic version of the flue shot), the four viruses selected by the WHO for the annual flu vaccine. They are safe for everyone, including babies and they come in a small sugar pill that dissolves quickly in your mouth.It involves no side effects. No trauma, no toxins and no risks. It is given when the body is healthy and shouldnâ€℠¢t be given during a time of illness. The benefits of homeopathic immunization are pretty good. It works by naturally strengthening the resistance of the child instead of targeting the pathogen, bacteria, or virus that causes the epidemic disease. For this reason pathogens can never develop a resistance to the prophylactics. The immunization protects against diseases for which no vaccine exists; an example of this is the â€Å"B† strain of meningococcal (meningitis) disease that is responsible for many infections.The immunization protects those that traditional vaccines are unsuitable, such as those who have had adverse reactions to other vaccines, the malnourished, and the sick and debilitated the immune-compromised, the pregnant, those allergic to vaccine materials and those on steroids. Vaccination: * Material dose; live, attenuated or killed virus, bacteria, toxin, in crude dose * Adjuvants to stimulate allergic response and other additives with the possibility of other v iruses, human fetus tissue, and DNA, animal byproducts etc. Multiple diseases given at once Homeoprophylaxis * Energetic dose; substances are potentized/diluted to reduce material dose but retain memory of disease/pathogen * Single disease at a time * No adjuvants, preservatives or contaminants National Attack rates and the Efficacy of Homeoprophylaxis Disease| Attack rates unimmunised %| Attack rate Homeoprophylaxis %| Efficacy of Homeoprophylaxis%| Whooping Cough| 85. 0| 11. 7| 86. 2| Measles| 90. 0| 9. 0| 90. 0| Mumps| 70. 0| 5. 9| 91. 6| (Golden, n. d. )Should any vaccines be required for children? Arguments for and arguments against: (Dimes, n. d. ) Argument FOR: Vaccination should be required for children. No individual should have the right to risk the health of the public solely for the purpose of satisfying their personal moral or religious views. (Parenting, n. d. ) This graph is showing that since vaccinations have been introduced the number of deaths caused by disease su ch as Measles, Whooping Cough, Diphtheria and Scarlet Fever have decreased.Therefore I believe that Vaccinations should be required for children, and no individual should have the right to risk the health of the public because they satisfying their personal moral or religious views because if they aren’t being vaccinated they are affecting everyone else around them. This graph is reliable because it clearly shows important information which shows that FOR argument is important because vaccinations are decreasing the deaths of people because of disease. Argument AGAINST: Governments should not have the right to intervene in the health decisions parents make for their children. 1% of parents believe they should have the right to refuse mandated school entry vaccinations for their children. This graph is showing the number of people contracting measles has increased due to parents refusing to let their children have the school entry vaccinations. Because of this there could end up being an epidemic in Wales, because a number of children are not protected from Measles. I think that the school entry vaccinations should be made mandatory; I think this because it will stop the spread of an epidemic as people will be vaccinated against Measles.This source is reliable because it clearly shows that because people are not being vaccinated, diseases are spreading rapidly. From looking at both these arguments for and against I think that all children should be forced into having vaccinations, no matter what there religion is or what they believe in. If all children have the vaccinations that are available to them then maybe one day all the horrid diseases will be wiped out. This includes anyone who migrates because nobody knows what diseases they could be carrying or they could have come from a disease ridden area.Argument FOR: Vaccines can get rid of disease and prevent serious illness and death. Mandatory vaccination has got rid of disease that once killed thousan ds of children, such as polio and small pox. (Murakami, 2011) This graph is showing that when the Small Pox Vaccination was made mandatory the number of deaths per million shot right down because people were made to have the vaccination. Then when the vaccination was no longer mandatory so the number of deaths per million shot straight back up again.Then finally the vaccination was made mandatory one last time, this was when Small Pox was finally wiped out. I think this source is reliable because it clearly shows how helpful the Small Pox vaccination was and also how effective it was to England and Wales. Argument AGAINST: Many parents hold religious beliefs against vaccination. Forcing such parents to vaccinate their children would violate their rights to the free exercise of their religion. From looking at both the argument for and against I feel that vaccinations should be mandatory no what the circumstances are.Everyone in world should be given these vaccinations because when va ccinations are made mandatory they do work, they do wipe out harmful disease, as my source shows about Small Pox. If the Small Pox vaccination was not made mandatory then the Small Pox disease would still be runny wild today. Argument FOR: Some individuals that have been vaccinated may still get sick when exposed to infected individuals, 75%-94% of the population, depending on the disease, must be vaccinated to achieve herd immunity. When the herd immunity is achieved the number of immunized individuals is high enough to prevent the spread of disease through the population. BBC, 2012) This graph is showing that the confirmed cases of Whooping cough in England and Wales rose from 2011 to 2012. This graph is perfect for the Argument FOR because it shows that the number of confirmed cases could be due to the vaccinated individuals being exposed to the infected individuals. My source is not as reliable as I would like it to be because it does not actually show that some of the confirmed cases of Whooping cough are due to the vaccinated children being exposed to the infected individuals. Argument AGAINST: Vaccines interfere with the natural law and God’s plan for humanity.Disease is a natural occurrence and humans should not interfere with it. From looking at the argument for and the argument against I feel that people should not be aloud to say that they do want vaccinating because it is going against God and the natural law, because yes they may believe that but them believing that affects a lot of other people they are not vaccinated so they are a risk to more people. I disagree with the statement that disease is a natural occurrence because if everyone in the world was to be vaccinated then diseases would be wiped out and nothing would occur.Argument FOR: The risks of not being vaccinated far outweigh the small risks associated with vaccination. Preventable diseases like measles and mumps can cause permanent disability and death. In 1991 an outbreak of m easles in an unvaccinated group of children in Philadelphia caused seven deaths. Children infected with mumps can become permanently deaf. Although a very small number of deaths from the MMR (measles, mumps, rubella) vaccine have been reported, the most common adverse reactions are minor soreness and or fever.Argument AGAINST: Common childhood vaccinations may cause rare yet serious reactions including anaphylactic shock, paralysis, and sudden death. This risk is not worth taking, considering most diseases vaccinated against are not necessarily life threatening. (Health, n. d. ) From looking at this pie chart I can see that there were a number of deaths related to diseases than can be preventable by a few simple vaccines. This graph shows that if all these children had been vaccinated from these diseases then the deaths wouldn’t have been anywhere near as high as they were.I think this graph is reliable because it shows the number of lives that could have been saved if the ch ildren have been vaccinated. From looking at the argument for and argument against I think the risk of contracting a disease should over weigh the possible side effects that the vaccination can bring. Although the side effects of the vaccination can be bad they only last a couple of days at most, whereas if you contract a disease it last between one and ten days and in some cases is can kill you.I think that parents should think about the risks and benefits in a lot of detail before they say that they do not want to vaccinate their children. Argument FOR: Because children and babies are more open to the swine flu they should be required to take FDA- approved vaccine to prevent illness and possible death. Argument AGAINST: Vaccines can cause brain inflammation which can then lead to either death or permanent brain damage and disorders such as autism, ADD/ADHA, and other developmental problems.Also this vaccine has been associated specifically with the development of autism and is sti ll found in certain tetanus and flu vaccines. (Anon. , n. d. ) This graph is showing the percentage of people who would and would not consider the swine flu vaccination. This pie chart just shows exactly why people are contracting diseases just like swine flu. I would say this source is reliable because it gives people a clear understanding of why certain diseases are quite rife.Argument FOR: Children should be required to receive vaccination against hepatitis B. the disease can cause inflammation of the liver leading to scarring of the liver or cancer. The world health organization recommends that hepatitis B vaccination be part of universal childhood vaccination routine. (Organization, n. d. ) This map shows which countries have and which countries have not introduced the HepB vaccination. This map shows us which countries have more disease issues and which do not.I think this vaccination is reliable because it shows us where vaccinations need to be put in place and then also made mandatory so diseases do not become rife. Argument AGAINST: All vaccines cause immune system suppression and can permanently damage the natural immune system. Unvaccinated children can build and strengthen their immune systems through fighting off infection and developing natural immunity to disease like measles and chickenpox. From looking at both the for and against argument I think that HepB should be made mandatory because it is a life threatening disease.I disagree with the statement that children can build and strengthen their immune system because with the diseases that can be contracted only the vaccination can properly protect them. To conclude I am for this question because I feel that all vaccines should be required for children for their own protection and well being. Parents who straight away say ‘NO NO NO I am not vaccinating my child’ should think about the benefits and risk factors, because I believe that the benefits over weigh the risk factors by a lo t.I understand that some parents do no want their children to have to suffer some of the side effects that the vaccinations bring, they need to realise that the side effects of the vaccinations are nothing compared to the diseases that they can contract. The diseases can also be life threating, so the parents need to realise that yes their child may have side effects from the vaccination which only last a day or two whereas if they contract a disease it is likely to last around one to ten days and also some can kill. I know what I’d rather my child have.In my opinion vaccinations should be made mandatory from everyone and anyone, whether they are religious or not. I think this because if half of a population are religious and the other half are non religious and are for vaccinations for example, the religious side are going to always contract the diseases because they are not protected against them and even though the non religious side that have been vaccinated are protected they can still contract the disease but it may not be as extreme as if the religious side were to contract the disease.If anyone migrates to the country they should be tested on and vaccinated straight away no questions asked because people do not know what they could be carrying, they could be bringing all sorts of diseases in the country. Bibliography (CDC), C. f. D. C. a. P. , n. d. [Online] Available at: http://www. marchofdimes. com/baby/wellbabycare_vaccinations. html [Accessed 16 February 2013]. 1999, D. O. H. , n. d. Meningococcal C Vaccine Factsheet. [Online] Available at: http://www. nhs. uk/Planners/vaccinations/Documents/mencfsht[1]. pdf [Accessed 16th February 2013]. 2000, H. . S. , n. d. Primary Childhood Immunisation. [Online] Available at: http://www. sehd. scot. nhs. uk/publications/his0/his0-10. htm [Accessed 16th February 2013]. Anon. , n. d. Swine Flu Vaccination. [Online] Available at: http://whatjapanthinks. com/2009/12/10/just-one-in-twenty-always-wear-masks- for-swine-flu-prevention/ [Accessed 16th February 2013]. BBC, 2012. BBC NEWS HEALTH. [Online] Available at: http://www. bbc. co. uk/news/health-20539837 [Accessed 16th February 2013]. Dimes, M. o. , n. d. Vaccines. [Online] Available at: http://vaccines. procon. org/#arguments Accessed 16th February 2013]. Golden, D. , n. d. Organic Life Love. [Online] Available at: http://organiclifelove. com/2011/03/22/a-safe-alternative-to-vaccines-homeopathic-immunization/ [Accessed 16th February 2013]. Health, G. , n. d. Resources. [Online] Available at: http://www. action. org/resources/item/undervaccination-by-the-numbers [Accessed 16th February 2013]. LaMorte, W. , n. d. Disease Surveillance. [Online] Available at: http://sph. bu. edu/otlt/MPH-Modules/PH/MA-Surveillance/MA-Surveillance7. html [Accessed 16th February 2013]. Meningitiswise, n. d. Online] Available at: http://www. meningitis. org/disease-info/vaccines [Accessed 16 FEBRUARY 2013]. Murakami, A. , 2011. Vaccination Fauxscination. [Online] Available at: http://aaronmurakami. com/blog/2011/01/29/vaccination-fauxscination/ [Accessed 16th February 2013]. NHS, n. d. NHS Choice. [Online] Available at: http://www. nhs. uk/Conditions/vaccinations/Pages/vaccination-schedule-age-checklist. aspx [Accessed 16 February 2013]. Organization, W. H. , n. d. World Heath. [Online] Available at: http://www. who. int/immunization_delivery/new_vaccines/hepb/en/index4. tml [Accessed 16th February 2013]. Parenting, N. , n. d. Natural Parenting. [Online] Available at: http://forums. naturalparenting. com. au/vaccination/39639-disease-vaccination-graphs. html [Accessed 16th February 2013]. safety, C. h. a. , n. d. Wakefield data questioned again. [Online] Available at: http://ebdblog. com/2009/02/wakefield-data-questioned-again/ [Accessed 16th february 2013]. Wikipedia, n. d. Wikipedia. [Online] Available at: http://en. wikipedia. org/wiki/Pneumococcal_conjugate_vaccine [Accessed 16 February 2013].

Cpa Questions

Multiple Choice—CPA Adapted Chapter 14 – Long Term Liabilities 1. On July 1, 2010, Spear Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2010 and mature on April 1, 2020. Interest is payable semiannually on April 1 and October 1. What amount did Spear receive from the bond issuance? a. $1,015,000 b. $1,000,000 c. $990,000 d. $965,000 2. On January 1, 2010, Solis Co. issued its 10% bonds in the face amount of $3,000,000, which mature on January 1, 2020. The bonds were issued for $3,405,000 to yield 8%, resulting in bond premium of $405,000.Solis uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2010, Solis's adjusted unamortized bond premium should be a. $405,000. b. $377,400. c. $364,500. d. $304,500. 3. On July 1, 2009, Noble, Inc. issued 9% bonds in the face amount of $5,000,000, which mature on July 1, 2015. The bonds were issued for $4,695,00 0 to yield 10%, resulting in a bond discount of $305,000. Noble uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2011, Noble's unamortized bond discount should be a. 264,050. b. $255,000. c. $244,000. d. $215,000. 4. On January 1, 2010, Huff Co. sold $1,000,000 of its 10% bonds for $885,296 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Huff report as interest expense for the six months ended June 30, 2010? a. $44,266 b. $50,000 c. $53,118 d. $60,000 5. On January 1, 2011, Doty Co. redeemed its 15-year bonds of $2,500,000 par value for 102. They were originally issued on January 1, 1999 at 98 with a maturity date of January 1, 2014. The bond issue costs relating to this transaction were $150,000.Doty amortizes discounts, premiums, and bond issue costs using the straight-line method. What amount of loss should Doty recognize on the redemption of these bonds (ignore taxes)? a. $90,000 b. $60,000 c. $50,000 d. $0 6. On its December 31, 2010 balance sheet, Emig Corp. reported bonds payable of $6,000,000 and related unamortized bond issue costs of $320,000. The bonds had been issued at par. On January 2, 2011, Emig retired $3,000,000 of the outstanding bonds at par plus a call premium of $70,000. What amount should Emig report in its 2011 income statement as loss on extinguishment of debt (ignore taxes)? . $0 b. $70,000 c. $160,000 d. $230,000 7. On January 1, 2006, Goll Corp. issued 1,000 of its 10%, $1,000 bonds for $1,040,000. These bonds were to mature on January 1, 2016 but were callable at 101 any time after December 31, 2009. Interest was payable semiannually on July 1 and January 1. On July 1, 2011, Goll called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Goll's gain or loss in 2011 on this early extinguishment of debt was a. $30,000 gain. b. $12,000 gain. c. $10,000 loss. d. $8,000 g ain. 8. On June 30, 2011, Omara Co. ad outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2021. Interest is payable on June 30 and December 31. The unamortized balances in the bond discount and deferred bond issue costs accounts on June 30, 2011 were $105,000 and $30,000, respectively. On June 30, 2011, Omara acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt? a. $2,970,000. b. $2,895,000. c. $2,865,000. d. $2,820,000. 9. A ten-year bond was issued in 2009 at a discount with a call provision to retire the bonds.When the bond issuer exercised the call provision on an interest date in 2011, the carrying amount of the bond was less than the call price. The amount of bond liability removed from the accounts in 2011 should have equaled the a. call price. b. call price less unamortized discount. c. face amount less unamortized discount. d. face amount plus unamor tized discount. 10. Paige Co. took advantage of market conditions to refund debt. This was the fourth refunding operation carried out by Paige within the last three years. The excess of the carrying amount of the old debt over the amount paid to extinguish it should be reported as a a. ain, net of income taxes. b. loss, net of income taxes. c. part of continuing operations. d. deferred credit to be amortized over the life of the new debt. *11. Eddy Co. is indebted to Cole under a $400,000, 12%, three-year note dated December 31, 2009. Because of Eddy's financial difficulties developing in 2011, Eddy owed accrued interest of $48,000 on the note at December 31, 2011. Under a troubled debt restructuring, on December 31, 2011, Cole agreed to settle the note and accrued interest for a tract of land having a fair value of $360,000. Eddy's acquisition cost of the land is $290,000.Ignoring income taxes, on its 2011 income statement Eddy should report as a result of the troubled debt restruc turing Gain on DisposalRestructuring Gain a. $158,000$0 b. $110,000$0 c. $70,000$40,000 d. $70,000$88,000 Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | a| 3. | a| 5. | a| 7. | d| 9. | c| *11. | d| 2. | b| 4. | c| 6. | d| 8. | c| 10. | c| | | No. AnswerDerivation 1. a($1,000,000 ? .99) + ($1,000,000 ? .10 ? 3/12) = $1,015,000. 2. b$405,000 – [($3,000,000 ? .10) – ($3,405,000 ? .08)] = $377,400. 3. a2009–2010:$4,695,000 + [($4,695,000 ? 1) – ($5,000,000 ? .09)] = $4,714,500. 2010–2011:$4,714,500 + ($471,450 – $450,000) = $4,735,950 $5,000,000 – $4,735,950 = $264,050. 4. c$885,296 ? .06 = $53,118. 5. a($2,500,000 ? 1. 02) –= $90,000. 6. d($3,000,000 + $70,000) – [($6,000,000 – $320,000) ? 1/2] = $230,000. 7. d – ($1,000,000 ? 1. 01) = $8,000. 8. c$3,000,000 – ($105,000 + $30,000) = $2,865,000. 9. cConceptual. 10. cConceptual . *11. d$360,000 – $290,000 = $70,000 ($400,000 + $48,000) – $360,000 = $88,000. Chapter 15 – Stockholders’ Equity 1. A corporation was organized in January 2007 with authorized capital of $10 par value common stock.On February 1, 2010, shares were issued at par for cash. On March 1, 2010, the corporation's attorney accepted 7,000 shares of common stock in settlement for legal services with a fair value of $90,000. Additional paid-in capital would increase on February 1, 2010March 1, 2010 a. YesNo b. YesYes c. NoNo d. NoYes 2. On July 1, 2010, Nall Co. issued 2,500 shares of its $10 par common stock and 5,000 shares of its $10 par convertible preferred stock for a lump sum of $125,000. At this date Nall's common stock was selling for $24 per share and the convertible preferred stock for $18 per share. The amount of he proceeds allocated to Nall's preferred stock should be a. $62,500. b. $75,000. c. $90,000. d. $68,750. 3. Horton Co. was organized on Janua ry 2, 2010, with 500,000 authorized shares of $10 par value common stock. During 2010, Horton had the following capital transactions: January 5—issued 375,000 shares at $14 per share. July 27—purchased 25,000 shares at $11 per share. November 25—sold 15,000 shares of treasury stock at $13 per share. Horton used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2010? . $0. b. $15,000. c. $30,000. d. $45,000. 4. In 2010, Hobbs Corp. acquired 9,000 shares of its own $1 par value common stock at $18 per share. In 2011, Hobbs issued 4,000 of these shares at $25 per share. Hobbs uses the cost method to account for its treasury stock transactions. What accounts and what amounts should Hobbs credit in 2011 to record the issuance of the 4,000 shares? TreasuryAdditionalRetainedCommon StockPaid-in CapitalEarnings Stock a. $72,000$70,000 b. $72,000$28,000 c. $96,000$4,0 00 d. $68,000$28,000$4,000 5. At its date of incorporation, Sauder, Inc. ssued 100,000 shares of its $10 par common stock at $11 per share. During the current year, Sauder acquired 20,000 shares of its common stock at a price of $16 per share and accounted for them by the cost method. Subsequently, these shares were reissued at a price of $12 per share. There have been no other issuances or acquisitions of its own common stock. What effect does the reissuance of the stock have on the following accounts? Retained EarningsAdditional Paid-in Capital a. DecreaseDecrease b. No effectDecrease c. DecreaseNo effect d. No effectNo effect 6. Farmer Corp. owned 20,000 shares of Eaton Corp. urchased in 2007 for $240,000. On December 15, 2010, Farmer declared a property dividend of all of its Eaton Corp. shares on the basis of one share of Eaton for every 10 shares of Farmer common stock held by its stockholders. The property dividend was distributed on January 15, 2011. On the declaration date, the aggregate market price of the Eaton shares held by Farmer was $400,000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of a. $0. b. $160,000. c. $240,000. d. $400,000. 7. A corporation declared a dividend, a portion of which was liquidating.How would this distribution affect each of the following? Additional Paid-in CapitalRetained Earnings a. DecreaseNo effect b. DecreaseDecrease c. No effectDecrease d. No effectNo effect 8. On May 1, 2010, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 100,000 shares of $1 par value common stock issued and outstanding. The fair value of Ziek ‘s common stock was $20 per share on May 1, 2010. As a result of this stock dividend, Ziek's total stockholders' equity a. increased by $200,000. b. decreased by $200,000. c. decreased by $10,000. d. did not change. . How would the declaration and subsequent issuance of a 10% stock dividend by the issuer af fect each of the following when the market value of the shares exceeds the par value of the stock? Additional Common StockPaid-in Capital a. No effectNo effect b. No effectIncrease c. IncreaseNo effect d. IncreaseIncrease 10. On December 31, 2010, the stockholders' equity section of Arndt, Inc. , was as follows: Common stock, par value $10; authorized 30,000 shares; issued and outstanding 9,000 shares$ 90,000 Additional paid-in capital116,000 Retained earnings 174,000 Total stockholders' equity$380,000On March 31, 2011, Arndt declared a 10% stock dividend, and accordingly 900 additional shares were issued, when the fair market value of the stock was $18 per share. For the three months ended March 31, 2011, Arndt sustained a net loss of $32,000. The balance of Arndt’s retained earnings as of March 31, 2011, should be a. $125,800. b. $133,000. c. $134,800. d. $142,000. *11. At December 31, 2010 and 2011, Plank Corp. had outstanding 2,000 shares of $100 par value 8% cumulative p referred stock and 10,000 shares of $10 par value common stock. At December 31, 2010, dividends in arrears on the preferred stock were $8,000.Cash dividends declared in 2011 totaled $30,000. What amounts were payable on each class of stock? Preferred StockCommon Stock a. $16,000$14,000 b. $22,000$8,000 c. $24,000$6,000 d. $30,000$0 Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | d| 3. | c| 5. | c| 7. | b| 9. | d| *11. | c| 2. | b| 4. | b| 6. | d| 8. | d| 10. | a| | | No. AnswerDerivation 1. dConceptual. 2. b($24 2,500) + ($18 5,000) = $150,000. $90,000 ————— ? $125,000 = $75,000. $150,000 3. c15,000 $2 = $30,000. 4. b(4,000 $18) = $72,000; (4,000 $7) = $28,000. . cConceptual. 6. d$400,000 (market value). 7. b Conceptual. 8. dConceptual. 9. dConceptual. 10. a$174,000 – $32,000 – (900 $18) = $125,800. *11. c($200,000 . 08) + $8,000 = $24,000; $30,000 – $24,000 = $6,000 Chapter 16 — Dilutive Securities ; Earnings Per Share 1. On January 2, 2010, Farr Co. issued 10-year convertible bonds at 105. During 2012, these bonds were converted into common stock having an aggregate par value equal to the total face amount of the bonds. At conversion, the market price of Farr’s common stock was 50 percent above its par value.On January 2, 2010, cash proceeds from the issuance of the convertible bonds should be reported as a. paid-in capital for the entire proceeds. b. paid-in capital for the portion of the proceeds attributable to the conversion feature and as a liability for the balance. c. a liability for the face amount of the bonds and paid-in capital for the premium over the face amount. d. a liability for the entire proceeds. 2. Lang Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. The sum of the fair value of the warrants and the face amount of the bonds exceeds the cash p roceeds.This excess is reported as a. Discount on Bonds Payable. b. Premium on Bonds Payable. c. Common Stock Subscribed. d. Paid-in Capital in Excess of Par—Stock Warrants. 3. On January 1, 2010, Sharp Corp. granted an employee an option to purchase 6,000 shares of Sharp's $5 par value common stock at $20 per share. The Black-Scholes option pricing model determines total compensation expense to be $140,000. The option became exercisable on December 31, 2011, after the employee completed two years of service. The market prices of Sharp's stock were as follows: January 1, 2010$30 December 31, 201150For 2011, should recognize compensation expense under the fair value method of a. $90,000. b. $30,000. c. $70,000. d. $0. *4. On January 2, 2010, for past services, Rosen Corp. granted Nenn Pine, its president, 16,000 stock appreciation rights that are exercisable immediately and expire on January 2, 2011. On exercise, Nenn is entitled to receive cash for the excess of the market pr ice of the stock on the exercise date over the market price on the grant date. Nenn did not exercise any of the rights during 2010. The market price of Rosen's stock was $30 on January 2, 2010, and $45 on December 31, 2010.As a result of the stock appreciation rights, Rosen should recognize compensation expense for 2010 of a. $0. b. $80,000. c. $240,000. d. $480,000. Multiple Choice Answers—Dilutive Securities, CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | d| 2. | a| 3. | c| *4. | c| No. AnswerDerivation 1. dConceptual. 2. aConceptual. 3. c$140,000 ? 2 = $70,000. *4. c($45 – $30) ? 16,000 = $240,000. Earnings Per Share 5. Didde Co. had 300,000 shares of common stock issued and outstanding at December 31, 2010. No common stock was issued during 2011. On January 1, 2011, Didde issued 200,000 shares of nonconvertible preferred stock.During 2011, Didde declared and paid $100,000 cash dividends on the common stock and $80,000 on the preferred stock. N et income for the year ended December 31, 2011 was $620,000. What should be Didde's 2011 earnings per common share? a. $2. 07 b. $1. 80 c. $1. 73 d. $1. 47 6. At December 31, 2011 and 2010, Miley Corp. had 180,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2011 or 2010. Net income for 2011 was $400,000. For 2011, earnings per common share amounted to a. $2. 22. b. $1. 94. c. 1. 67. d. $1. 11. 7. Marsh Co. had 2,400,000 shares of common stock outstanding on January 1 and December 31, 2011. In connection with the acquisition of a subsidiary company in June 2010, Marsh is required to issue 100,000 additional shares of its common stock on July 1, 2012, to the former owners of the subsidiary. Marsh paid $200,000 in preferred stock dividends in 2011, and reported net income of $3,400,000 for the year. Marsh's diluted earnings per share for 2011 should be a. $1. 42. b. $1. 36. c. $1. 33. d. $1. 28. 8. Foyle, Inc. , had 560,000 shares of common stock issued and outstanding at December 31, 2010.On July 1, 2011, an additional 40,000 shares of common stock were issued for cash. Foyle also had unexercised stock options to purchase 32,000 shares of common stock at $15 per share outstanding at the beginning and end of 2011. The average market price of Foyle's common stock was $20 during 2011. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2011? a. 580,000 b. 588,000 c. 608,000 d. 612,000 9. When computing diluted earnings per share, convertible securities are a. ignored. b. recognized only if they are dilutive. c. recognized only if they are antidilutive. . recognized whether they are dilutive or antidilutive. 10. In determining diluted earnings per share, dividends on nonconvertible cumulative preferred stock should be a. disregarded. b. added back to net income whether de clared or not. c. deducted from net income only if declared. d. deducted from net income whether declared or not. 11. The if-converted method of computing earnings per share data assumes conversion of convertible securities as of the a. beginning of the earliest period reported (or at time of issuance, if later). b. beginning of the earliest period reported (regardless of time of issuance). c. iddle of the earliest period reported (regardless of time of issuance). d. ending of the earliest period reported (regardless of time of issuance). Multiple Choice Answers—Earnings Per Share—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 5. | b| 6. | b| 7. | d| 8. | b| 9. | b| 10. | d| 11. | a| No. AnswerDerivation 5. b$620,000 – $80,000 ————————— = $1. 80. 300,000 6. b $400,000 – (10,000 ? $100 ? .05) ————— Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€ = $1. 94. 180,000 7. d $3,400,000 – $200,000 ——————————– = $1. 28. 2,400,000 + 100,000 8. b560,000 + (40,000 ? 6/12) + [32,000 – (32,000 ? 15 ? $20)] = 588,000. 9. bConceptual. 10. dConceptual. 11. aConceptual. Chapter 17 – Investments 1. On October 1, 2010, Wenn Co. purchased 600 of the $1,000 face value, 8% bonds of Loy, Inc. , for $702,000, including accrued interest of $12,000. The bonds, which mature on January 1, 2017, pay interest semiannually on January 1 and July 1. Wenn used the straight-line method of amortization and appropriately recorded the bonds as available-for-sale. On Wenn's December 31, 2011 balance sheet, the carrying value of the bonds is a. $690,000. b. $684,000. c. $681,600. d. $672,000. 2. Valet Corp. egan operations in 2010. An analysis of Valet’s equity securities portfolio acquir ed in 2010 shows the following totals at December 31, 2010 for trading and available-for-sale securities: TradingAvailable-for-Sale SecuritiesSecurities Aggregate cost$90,000$110,000 Aggregate fair value65,00095,000 What amount should Valet report in its 2010 income statement for unrealized holding loss? a. $40,000. b. $10,000. c. $15,000. d. $25,000. 3. At December 31, 2010, Jeter Corp. had the following equity securities that were purchased during 2010, its first year of operation: FairUnrealized Cost ValueGain (Loss)Trading Securities: SecurityA$ 90,000$ 60,000$(30,000) B 15,000 20,000 5,000 Totals$105,000$ 80,000$(25,000) Available-for-Sale Securities: SecurityY$ 70,000$ 80,000$ 10,000 Z 85,000 55,000 (30,000) Totals$155,000$135,000$(20,000) All market declines are considered temporary. Fair value adjustments at December 31, 2010 should be established with a corresponding charge against IncomeStockholders’ Equity a. $45,000$ 0 b. $30,000$30,000 c. $25,000$20,000 d. $25,00 0$ 0 4. On December 29, 2011, James Co. sold an equity security that had been purchased on January 4, 2010.James owned no other equity securities. An unrealized holding loss was reported in the 2010 income statement. A realized gain was reported in the 2011 income statement. Was the equity security classified as available-for-sale and did its 2010 market price decline exceed its 2011 market price recovery? 2010 Market Price Decline Exceeded 2011 Available-for-SaleMarket Price Recovery a. YesYes b. YesNo c. NoYes d. NoNo Use the following information for questions 5 through 7. Rich, Inc. acquired 30% of Doane Corp. ‘s voting stock on January 1, 2010 for $400,000. During 2010, Doane earned $160,000 and paid dividends of $100,000.Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. During 2011, Doane earned $200,000 and paid dividends of $60,000 on April 1 and $60,000 on October 1. On July 1, 2011, Ri ch sold half of its stock in Doane for $264,000 cash. 5. Before income taxes, what amount should Rich include in its 2010 income statement as a result of the investment? a. $160,000. b. $100,000. c. $48,000. d. $30,000. 6. The carrying amount of this investment in Rich's December 31, 2010 balance sheet should be a. $400,000. b. $418,000. c. $448,000. d. $460,000. . What should be the gain on sale of this investment in Rich's 2011 income statement? a. $64,000. b. $55,000. c. $49,000. d. $40,000. 8. On January 1, 2010, Reston Co. purchased 25% of Ace Corp. ‘s common stock; no goodwill resulted from the purchase. Reston appropriately carries this investment at equity and the balance in Reston’s investment account was $720,000 at December 31, 2010. Ace reported net income of $450,000 for the year ended December 31, 2010, and paid common stock dividends totaling $180,000 during 2010. How much did Reston pay for its 25% interest in Ace? a. $652,500. b. $765,000. c. $787,500. d. 877,500. 9. On December 31, 2010, Patel Co. purchased equity securities as trading securities. Pertinent data are as follows: Fair Value Security CostAt 12/31/11 A$132,000$117,000 B168,000186,000 C288,000258,000 On December 31, 2011, Patel transferred its investment in security C from trading to available-for-sale because Patel intends to retain security C as a long-term investment. What total amount of gain or loss on its securities should be included in Patel's income statement for the year ended December 31, 2011? a. $3,000 gain. b. $27,000 loss. c. $30,000 loss. d. $45,000 loss. Multiple Choice Answers—CPA AdaptedItem| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | d| 3. | c| 5. | c| 7. | c| 9. | b| 2. | d| 4. | d| 6. | b| 8. | a| | | No. AnswerDerivation 1. d$702,000 – $12,000 = $690,000 15 $690,000 – ($90,000 ? — ) = $672,000. 75 2. d$90,000 – $65,000 = $25,000. 3. c 4. dConceptual. 5. c$160,000 ? 30% = $48,000. 6. b$400,0 00 + $48,000 – ($100,000 ? 30%) = $418,000. 7. c$418,000 – ($60,000 ? 30%) + ($200,000 ? 50% ? 30%) = $430,000. $264,000 – ($430,000 ? 2) = $49,000. 8. a$720,000 – ($450,000 ? 25%) + ($180,000 ? 25%) = $652,500. 9. b$18,000 – $15,000 – $30,000 = $27,000 loss. Chapter 18 – Revenue Recognition . According to the FASB's conceptual framework, the process of reporting an item in the financial statements of an entity is a. recognition. b. realization. c. allocation. d. matching. 2. Green Construction Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2010, Green entered into a fixed-price contract to construct an office building for $12,000,000. Information relating to the contract is as follows: At December 31 2010 2011 Percentage of completion15%45% Estimated total cost at completion$9,000,000$9,600,000 Gross profit recognized (cumulative)600,0001,440,000Contract costs incurred during 2011 were: a . $2,880,000. b. $2,970,000. c. $3,150,000. d. $4,320,000. 3. Bruner Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2010, Bruner started work on a $35,000,000 construction contract that was completed in 2011. The following information was taken from Bruner's 2010 accounting records: Progress billings$11,000,000 Costs incurred10,500,000 Collections7,000,000 Estimated costs to complete21,000,000 What amount of gross profit should Bruner have recognized in 2010 on this contract? a. $3,500,000 b. 2,333,334 c. $1,750,000 d. $1,166,667 4. During 2010, Gates Corp. started a construction job with a total contract price of $3,500,000. The job was completed on December 15, 2011. Additional data are as follows: 2010 2011 Actual costs incurred$1,350,000$1,525,000 Estimated remaining costs1,350,000— Billed to customer1,200,0002,300,000 Received from customer1,000,0002,400,000 Under the completed-contract method, what amount should Ga tes recognize as gross profit for 2011? a. $225,000 b. $312,500 c. $475,000 d. $625,000 5. Hogan Farms produced 800,000 pounds of cotton during the 2010 season.Hogan sells all of its cotton to Ott Co. , which has agreed to purchase Hogan's entire production at the prevailing market price. Recent legislation assures that the market price will not fall below $. 70 per pound during the next two years. Hogan's costs of selling and distributing the cotton are immaterial and can be reasonably estimated. Hogan reports its inventory at expected exit value. During 2010, Hogan sold and delivered to Ott 600,000 pounds at the market price of $. 70. Hogan sold the remaining 200,000 pounds during 2011 at the market price of $. 72. What amount of revenue should Hogan recognize in 2010? . $420,000 b. $432,000 c. $560,000 d. $576,000 6. Braun, Inc. appropriately uses the installment-sales method of accounting to recognize income in its financial statements. Some pertinent data relating to this metho d of accounting include: 2010 2011 Installment sales$750,000$720,000 Cost of installment sales 570,000 504,000 Gross profit$180,000$216,000 Rate of gross profit24%30% Balance of deferred gross profit at year end: 2010$108,000$ 36,000 2011 198,000 Total$108,000$234,000 What amount of installment accounts receivable should be presented in Braun's December 31, 2011 balance sheet? a. 720,000 b. $810,000 c. $780,000 d. $866,666 7. Hartz Co. , which began operations on January 1, 2010, appropriately uses the installment-sales method of accounting. The following information pertains to Hartz's operations for the year 2010: Installment sales$1,200,000 Regular sales480,000 Cost of installment sales720,000 Cost of regular sales288,000 General and administrative expenses96,000 Collections on installment sales288,000 The deferred gross profit account in Hartz's December 31, 2010 balance sheet should be a. $115,200. b. $192,000. c. $364,800. d. $480,000. 8. On January 1, 2010, Orton Co. old a us ed machine to King, Inc. for $350,000. On this date, the machine had a depreciated cost of $245,000. King paid $50,000 cash on January 1, 2010 and signed a $300,000 note bearing interest at 10%. The note was payable in three annual installments of $100,000 beginning January 1, 2011. Orton appropriately accounted for the sale under the installment method. King made a timely payment of the first installment on January 1, 2011 of $130,000, which included interest of $30,000 to date of payment. At December 31, 2011, Orton has deferred gross profit of a. $70,000. b. $66,000. c. $60,000. d. 51,000. 9. Piper Co. began operations on January 1, 2010 and appropriately uses the installment method of accounting. The following information pertains to Piper's operations for 2010: Installment sales1,800,000 Cost of installment sales1,080,000 General and administrative expenses180,000 Collections on installment sales825,000 The balance in the deferred gross profit account at December 31, 2010 shoul d be a. $330,000. b. $495,000. c. $390,000. d. $720,000. 10. Moon Co. records all sales using the installment method of accounting. Installment sales contracts call for 36 equal monthly cash payments.According to the FASB's conceptual framework, the amount of deferred gross profit relating to collections 12 months beyond the balance sheet date should be reported in the a. current liabilities section as a deferred revenue. b. noncurrent liabilities section as a deferred revenue. c. current assets section as a contra account. d. noncurrent assets section as a contra account. 11. Crane, Inc. is a retailer of home appliances and offers a service contract on each appliance sold. Crane sells appliances on installment contracts, but all service contracts must be paid in full at the time of sale.Collections received for service contracts should be recorded as an increase in a a. deferred revenue account. b. sales contracts receivable valuation account. c. stockholders' valuation account. d. service revenue account. Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | a| 3. | d| 5. | c| 7. | c| 9. | c| 11. | a| 2. | b| 4. | d| 6. | b| 8. | c| 10. | c| | | No. AnswerDerivation 1. aConceptual. 2. b($9,600,000 45%) – ($9,000,000 15%) = $2,970,000. $10,500,000 3. d—————— ($35,000,000 – $31,500,000) = $1,166,667. $31,500,000 . d$3,500,000 – $1,350,000 – $1,525,000 = $625,000. 5. c800,000 lbs. $. 70 = $560,000. 6. b($36,000 ? 24%) + ($198,000 ? 30%) = $810,000. 7. c$1,200,000 – $720,000 = $480,000 gross profit (40% gross profit rate) $480,000 – ($288,000 . 4) = $364,800. 8. c$300,000 + $50,000 = $350,000 $350,000 – $245,000 = $105,000 gross profit (30% gross profit rate) ($300,000 – $100,000) ? 30% = $60,000. 9. c$1,800,000 – $1,080,000 = $720,000 (40% gross profit rate)$720,000 – ($825,00 0 40%) = $390,000. 10. cConceptual. 11. aConceptual. Chapter 20 Accounting for Pensions ; Post Retirement Benefits 1.The following information pertains to Hopson Co. ‘s pension plan: Actuarial estimate of projected benefit obligation at 1/1/11$72,000 Assumed discount rate10% Service costs for 2011$18,000 Pension benefits paid during 2011$15,000 If no change in actuarial estimates occurred during 2011, Hopson's projected benefit obligation at December 31, 2011 was a. $64,200. b. $75,000. c. $79,200. d. $82,200. 2. Interest cost included in pension expense recognized for a period by an employer sponsoring a defined-benefit pension plan represents the a. shortage between the expected and actual returns on plan assets. b. ncrease in the projected benefit obligation due to the passage of time. c. increase in the fair value of plan assets due to the passage of time. d. amortization of the discount on accumulated OCI (PSC). 3. Logan Corp. , a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2011: Projected benefit obligation$600,000 Accumulated benefit obligation525,000 Fair value of plan assets825,000 Service cost240,000 Interest on projected benefit obligation24,000Amortization of prior service cost60,000 Expected and actual return on plan assets82,500 The market-related asset value equals the fair value of plan assets. No contributions have been made for 2011 pension cost. In its December 31, 2011 balance sheet, Logan should report a pension asset / liability of a. Pension liability of $600,000 b. Pension asset of $824,000 c. Pension asset of $225,000 d. Pension liability of $525,000 4. Seigel Co. maintains a defined-benefit pension plan for its employees. At each balance sheet date, Yeager should report a pension asset / liability equal to the a. ccumulated benefit obligation. b. projected benefit ob ligation. c. accumulated benefit obligation. d. funded status relative to the projected benefit obligation. 5. Ohlman, Inc. maintains a defined-benefit pension plan for its employees. As of December 31, 2011, the market value of the plan assets is less than the accumulated benefit obligation. The projected benefit obligation exceeds the accumulated benefit obligation. In its balance sheet as of December 31, 2011, Ohlman should report a liability in the amount of the a. excess of the projected benefit obligation over the fair value of the plan assets. b. xcess of the accumulated benefit obligation over the fair value of the plan assets. c. projected benefit obligation. d. accumulated benefit obligation. 6. At December 31, 2011, the following information was provided by the Vargas Corp. pension plan administrator: Fair value of plan assets$4,500,000 Accumulated benefit obligation5,580,000 Projected benefit obligation7,200,000 What is the amount of the pension liability that should be shown on Vargas' December 31, 2011 balance sheet? a. $7,200,000 b. $2,700,000 c. $1,620,000 d. $1,080,000 Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | 1. d| 3. | c| 5. | a| 2. | b| 4. | d| 6. | b| No. AnswerDerivation 1. d$72,000 + $18,000 + ($72,000 ? .10) – $15,000 = $82,200. 2. bConceptual. 3. c$825,000 – $600,000 = $225,000. 4. dConceptual. 5. aConceptual. 6. b$7,200,000 – $4,500,000 = $2,700,000. Chapter 21 –Accounting for Leases 1. Lease A does not contain a bargain purchase option, but the lease term is equal to 90 percent of the estimated economic life of the leased property. Lease B does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 75 percent of the estimated economic life of the leased property.How should the lessee classify these leases? Lease A Lease B a. Operating leaseCapital lease b. Operating leaseOperating lease c. Capital leaseCapita l lease d. Capital leaseOperating lease 2. On December 31, 2011, Burton, Inc. leased machinery with a fair value of $840,000 from Cey Rentals Co. The agreement is a six-year noncancelable lease requiring annual payments of $160,000 beginning December 31, 2011. The lease is appropriately accounted for by Burton as a capital lease. Burton's incremental borrowing rate is 11%. Burton knows the interest rate implicit in the lease payments is 10%.The present value of an annuity due of 1 for 6 years at 10% is 4. 7908. The present value of an annuity due of 1 for 6 years at 11% is 4. 6959. In its December 31, 2011 balance sheet, Burton should report a lease liability of a. $606,528. b. $680,000. c. $751,344. d. $766,528. 3. On December 31, 2010, Harris Co. leased a machine from Catt, Inc. for a five-year period. Equal annual payments under the lease are $630,000 (including $30,000 annual executory costs) and are due on December 31 of each year. The first payment was made on December 31, 201 0, and the second payment was made on December 31, 2011.The five lease payments are discounted at 10% over the lease term. The present value of minimum lease payments at the inception of the lease and before the first annual payment was $2,502,000. The lease is appropriately accounted for as a capital lease by Harris. In its December 31, 2011 balance sheet, Harris should report a lease liability of a. $1,902,000. b. $1,872,000. c. $1,711,800. d. $1,492,200. 4. A lessee had a ten-year capital lease requiring equal annual payments. The reduction of the lease liability in year 2 should equal a. the current liability shown for the lease at the end of year 1. . the current liability shown for the lease at the end of year 2. c. the reduction of the lease liability in year 1. d. one-tenth of the original lease liability. Use the following information for questions 5 and 6. On January 2, 2011, Hernandez, Inc. signed a ten-year noncancelable lease for a heavy duty drill press. The lease stip ulated annual payments of $150,000 starting at the end of the first year, with title passing to Hernandez at the expiration of the lease. Hernandez treated this transaction as a capital lease. The drill press has an estimated useful life of 15 years, with no salvage value.Hernandez uses straight-line depreciation for all of its plant assets. Aggregate lease payments were determined to have a present value of $900,000, based on implicit interest of 10%. 5. In its 2011 income statement, what amount of interest expense should Hernandez report from this lease transaction? a. $0 b. $56,250 c. $75,000 d. $90,000 6. In its 2011 income statement, what amount of depreciation expense should Hernandez report from this lease transaction? a. $150,000 b. $100,000 c. $90,000 d. $60,000 7. In a lease that is recorded as a sales-type lease by the lessor, interest revenue a. hould be recognized in full as revenue at the lease's inception. b. should be recognized over the period of the lease using the straight-line method. c. should be recognized over the period of the lease using the effective interest method. d. does not arise. 8. Torrey Co. manufactures equipment that is sold or leased. On December 31, 2011, Torrey leased equipment to Dalton for a five-year period ending December 31, 2016, at which date ownership of the leased asset will be transferred to Dalton. Equal payments under the lease are $220,000 (including $20,000 executory costs) and are due on December 31 of each year.The first payment was made on December 31, 2011. Collectibility of the remaining lease payments is reasonably assured, and Torrey has no material cost uncertainties. The normal sales price of the equipment is $770,000, and cost is $600,000. For the year ended December 31, 2011, what amount of income should Torrey realize from the lease transaction? a. $170,000 b. $220,000 c. $230,000 d. $330,000 *9. Jamar Co. sold its headquarters building at a gain, and simultaneously leased back the building. The lease was reported as a capital lease. At the time of the sale, the gain should be reported as a. perating income. b. an extraordinary item, net of income tax. c. a separate component of stockholders' equity. d. a deferred gain. *10. On December 31, 2011, Haden Corp. sold a machine to Ryan and simultaneously leased it back for one year. Pertinent information at this date follows: Sales price$900,000 Carrying amount825,000 Present value of reasonable lease rentals ($7,500 for 12 months @ 12%)85,000 Estimated remaining useful life12 years In Haden’s December 31, 2011 balance sheet, the deferred profit from the sale of this machine should be a. $85,000. b. $75,000. c. $10,000. . $0. Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | c| 3. | d| 5. | d| 7. | c| *9. | d| 2. | a| 4. | a| 6. | d| 8. | a| *10| d| No. AnswerDerivation 1. cConceptual. 2. a($160,000 ? 4. 7908) – $160,000 = $606,528. 3. d$2,502,000 †“ $630,000 + $30,000 = $1,902,000 (2010). $1,902,000 – [$600,000 – ($1,902,000 ? .10)] = $1,492,200 (2011). 4. aConceptual. 5. d$900,000 ? .10 = $90,000. 6. d$900,000 ? 15 = $60,000. 7. cConceptual. 8. a$770,000 – $600,000 = $170,000. *9. dConceptual. *10. d = 9. 44%, < 10% of FV of asset ? t is a minor leaseback. Chapter 22-Accounting Changes and Error Analysis 1. Which of the following should be reported as a prior period adjustment? Change inChange from Estimated LivesUnaccepted Principle of Depreciable Assetsto Accepted Principle a. YesYes b. NoYes c. YesNo d. NoNo 2. On December 31, 2011, Grantham, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost for financial statement and income tax purposes. The change will result in a $1,500,000 increase in the beginning inventory at January 1, 2011. Assume a 30% income tax rate.The cumulative effect of this accounting change on beginning retained earnings is a. $0. b. $450,000. c. $1,050,000. d. $1,500,000. 3. On January 1, 2011, Frost Corp. changed its inventory method to FIFO from LIFO for both financial and income tax reporting purposes. The change resulted in an $800,000 increase in the January 1, 2011 inventory. Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Frost in its 2011 a. retained earnings statement as a $560,000 addition to the beginning balance. b. ncome statement as a $560,000 cumulative effect of accounting change. c. retained earnings statement as an $800,000 addition to the beginning balance. d. income statement as an $800,000 cumulative effect of accounting change. 4. On January 1, 2008, Lake Co. purchased a machine for $792,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 1, 2011, Lake determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $72,000. An accounting change was made in 2011 to reflect these additional data.The accumulated depreciation for this machine should have a balance at December 31, 2011 of a. $438,000. b. $462,000. c. $480,000. d. $528,000. 5. On January 1, 2008, Hess Co. purchased a patent for $595,000. The patent is being amortized over its remaining legal life of 15 years expiring on January 1, 2023. During 2011, Hess determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2011? a. $357,000 b. $408,000 c. $420,000 . $436,375 6. During 2010, a textbook written by Mercer Co. personnel was sold to Roark Publishing, Inc. , for royalties of 10% on sales. Royalties are receivable semiannually on March 31, for sales in July through December of the prior year, and on September 30, for sales in January through June of the same year. * Royalty income of $108,000 was accrued at 12/31/10 for the period July-December 2010. * Royalty income of $120,000 was received on 3/31/11, and $156,000 on 9/30/11. * Mercer learned from Roark that sales subject to royalty were estimated at $1,620,000 for the last half of 2011.In its income statement for 2011, Mercer should report royalty income at a. $276,000. b. $288,000. c. $318,000. d. $330,000. 7. On January 1, 2010, Janik Corp. acquired a machine at a cost of $500,000. It is to be depreciated on the straight-line method over a five-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in Janik's 2010 financial statements. The oversight was discovered during the preparation of Janik's 2011 financial statements. Depreciation expense on this machine for 2011 should be a. $0. b. $100,000. c. $125,000. d. $200,000. 8.On December 31, 2011, special insurance costs, incurred but unpaid, were not reco rded. If these insurance costs were related to work in process, what is the effect of the omission on accrued liabilities and retained earnings in the December 31, 2011 balance sheet? Accrued LiabilitiesRetained Earnings a. No effectNo effect b. No effectOverstated c. UnderstatedNo effect d. UnderstatedOverstated 9. Black, Inc. is a calendar-year corporation whose financial statements for 2010 and 2011 included errors as follows: YearEnding InventoryDepreciation Expense 2010$162,000overstated$135,000overstated 201154,000understated45,000understatedAssume that purchases were recorded correctly and that no correcting entries were made at December 31, 2010, or at December 31, 2011. Ignoring income taxes, by how much should Black's retained earnings be retroactively adjusted at January 1, 2012? a. $144,000 increase b. $36,000 increase c. $18,000 decrease d. $9,000 increase Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | b| 3. | a| 5. | b| 7. | b| 9. | a| 2. | c| 4. | a| 6. | d| 8. | c| | | No. AnswerDerivation 1. bConceptual. 2. c$1,500,000 ? (1 – . 3) = $1,050,000. 3. a$800,000 ? (1 – . ) = $560,000. 4. a$792,000 ? 3/8 = $297,000 $297,000 + [($792,000 – $297,000 – $72,000) ? 1/3] = $438,000. 5. b$595,000 ? 3/15 = $119,000 $595,000 – $119,000 – [($595,000 – $119,000) ? 1/7] = $408,000. 6. d($120,000 – $108,000) + $156,000 + ($1,620,000 ? .10) = $330,000. 7. b$500,000 ? 5 = $100,000. 8. cConceptual. 9. a$54,000 (u) + $135,000 (u) – $45,000 (o) = $144,000 (u). Chapter 23- Statement of Cash Flows Use the following information for questions 1 and 2. A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. . In a statement of cash flows, what amount is included in investing activities for the above transaction? a. Cash payment b. Acquisition price c. Zero d . Mortgage amount 2. In a statement of cash flows, what amount is included in financing activities for the above transaction? a. Cash payment b. Acquisition price c. Zero d. Mortgage amount Use the following information for questions 3 and 4. Smiley Corp. ‘s transactions for the year ended December 31, 2011 included the following: * Purchased real estate for $550,000 cash which was borrowed from a bank. Sold available-for-sale securities for $500,000. * Paid dividends of $600,000. * Issued 500 shares of common stock for $250,000. * Purchased machinery and equipment for $125,000 cash. * Paid $450,000 toward a bank loan. * Reduced accounts receivable by $100,000. * Increased accounts payable $200,000. 3. Smiley's net cash used in investing activities for 2011 was a. $675,000. b. $375,000. c. $175,000. d. $50,000. 4. Smiley's net cash used in financing activities for 2011 was a. $50,000. b. $250,000. c. $450,000. d. $500,000. Use the following information for questions 5 and 6. P eavy Corp. s transactions for the year ended December 31, 2011 included the following: 0 Acquired 50% of Gant Corp. ‘s common stock for $180,000 cash which was borrowed from a bank. 1 Issued 5,000 shares of its preferred stock for land having a fair value of $320,000. 2 Issued 500 of its 11% debenture bonds, due 2016, for $392,000 cash. 3 Purchased a patent for $220,000 cash. 4 Paid $120,000 toward a bank loan. 5 Sold available-for-sale securities for $796,000. 6 Had a net increase in returnable customer deposits (long-term) of $88,000. 5. Peavy’s net cash provided by investing activities for 2011 was a. $296,000. b. 396,000. c. $476,000. d. $616,000. 6. Peavy’s net cash provided by financing activities for 2011 was a. $452,000. b. $540,000. c. $572,000. d. $660,000. Use the following information for questions 7 through 9. Jamison Corp. ‘s balance sheet accounts as of December 31, 2011 and 2010 and information relating to 2011 activities are presented below . December 31, 2011 2010 Assets Cash$ 440,000$ 200,000 Short-term investments600,000— Accounts receivable (net)1,020,0001,020,000 Inventory1,380,0001,200,000 Long-term investments400,000600,000 Plant assets3,400,0002,000,000 Accumulated depreciation(900,000)(900,000)Patent 180,000 200,000 Total assets$6,520,000$4,320,000 Liabilities and Stockholders' Equity Accounts payable and accrued liabilities$1,660,000$1,440,000 Notes payable (nontrade)580,000— Common stock, $10 par1,600,0001,400,000 Additional paid-in capital800,000500,000 Retained earnings 1,880,000 980,000 Total liabilities and stockholders' equity$6,520,000$4,320,000 Information relating to 2011 activities: 7 Net income for 2011 was $1,500,000. 8 Cash dividends of $600,000 were declared and paid in 2011. 9 Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2011 for $360,000. 0 A long-term investment was sold in 2011 for $320,000. There were no other transactions affecting long-te rm investments in 2011. 11 20,000 shares of common stock were issued in 2011 for $25 a share. 12 Short-term investments consist of treasury bills maturing on 6/30/12. 7. Net cash provided by Jamison’s 2011 operating activities was a. $1,500,000. b. $2,120,000. c. $2,080,000. d. $2,160,000. 8. Net cash used in Jamison’s 2011 investing activities was a. $2,320,000. b. $1,820,000. c. $1,680,000. d. $1,720,000. 9. Net cash provided by Jamison’s 2011 financing activities was a. 480,000. b. $520,000. c. $1,080,000. d. $1,680,000. 10. Foxx Corp. ‘s comparative balance sheet at December 31, 2011 and 2010 reported accumulated depreciation balances of $800,000 and $600,000, respectively. Property with a cost of $50,000 and a carrying amount of $38,000 was the only property sold in 2011. Depreciation charged to operations in 2011 was a. $188,000. b. $200,000. c. $212,000. d. $224,000. 11. Nagel Co. ‘s prepaid insurance was $90,000 at December 31, 2011 and $45,0 00 at December 31, 2010. Insurance expense was $36,000 for 2011 and $27,000 for 2010.What amount of cash disbursements for insurance would be reported in Nagel's 2011 net cash provided by operating activities presented on a direct basis? a. $99,000. b. $81,000. c. $54,000. d. $36,000. Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | a| 3. | c| 5. | b| 7. | c| 9. | a| 11. | b| 2. | c| 4. | b| 6. | b| 8. | a| 10. | c| | | No. AnswerDerivation 1. aConceptual. 2. cConceptual. 3. c($550,000) + $500,000 – $125,000 = ($175,000). 4. b$550,000 – $600,000 + $250,000 – $450,000 = ($250,000). 5. b($180,000) – $220,000 + $796,000 = $396,000. 6. $180,000 + $392,000 – $120,000 + $88,000 = $540,000. 7. c$1,500,000 – $180,000 + ($900,000 – $900,000 + $680,000) – ($360,000 – $320,000) + $20,000 + $220,000 – ($320,000 – $200,000) = $2,080,000. 8. a$3 20,000 + $360,000 – ($3,400,000 + $1,000,000 – $2,000,000) – $600,000 = $2,320,000. 9. a20,000 ? $25 = $500,000 $500,000 + $580,000 – $600,000 = $480,000. 10. c$800,000 – $600,000 + ($50,000 – $38,000) = $212,000. 11. b$90,000 + $36,000 – $45,000 = $81,000. Chapter 24- Full Disclosure in Financial Reporting 1. Which of the following facts concerning plant assets should be included in the summary of significant accounting policies?Depreciation MethodComposition a. NoYes b. YesYes c. YesNo d. NoNo 2. Farr, Inc. is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers. Farr should report segment financial information for each division meeting which of the following criteria? a. Segment profit or loss is 10% or more of consolidated profit or loss. b. Segment profit or loss is 10% or more of combined profit or loss of all company segments. c. Segment revenue is 10% or more of combined revenue o f all the company segments. d. Segment revenue is 10% or more of consolidated revenue. 3. Unruh Corp. nd its divisions are engaged solely in manufacturing operations. The following data (consistent with prior years' data) pertain to the industries in which operations were conducted for the year ended December 31, 2011. Assets Industry Revenue Profit 12/31/11 A$ 8,000,000$1,320,000$16,000,000 B6,400,0001,120,00014,000,000 C4,800,000960,00010,000,000 D2,400,000440,0005,200,000 E3,400,000540,0005,600,000 F 1,200,000 180,000 2,400,000 $26,200,000$4,560,000$53,200,000 In its segment information for 2011, how many reportable segments does Unruh have? a. Three b. Four c. Five d. Six 4.The following information pertains to Nixon Corp. and its divisions for the year ended December 31, 2011. Sales to unaffiliated customers$2,500,000 Intersegment sales of products similar to those sold to unaffiliated customers750,000 Interest earned on loans to other operating segments50,000 Nixon and all of its divisions are engaged solely in manufacturing operations. Nixon has a reportable segment if that segment's revenue exceeds a. $330,000. b. $325,000. c. $255,000. d. $250,000. 5. Advertising costs may be accrued or deferred to provide an appropriate expense in each period for InterimYear-end Financial ReportingFinancial Reporting . YesNo b. YesYes c. NoNo d. NoYes 6. Mayo Corp. has estimated that total depreciation expense for the year ending December 31, 2011 will amount to $300,000, and that 2011 year-end bonuses to employees will total $600,000. In Mayo's interim income statement for the six months ended June 30, 2011, what is the total amount of expense relating to these two items that should be reported? a. $0. b. $150,000. c. $450,000. d. $900,000. 7. Fina Corp. had the following transactions during the quarter ended March 31, 2011: Loss from hurricane damage$350,000 Payment of fire insurance premium for calendar year 2011500,000What amount should be included in Fina's inco me statement for the quarter ended March 31, 2011? Extraordinary LossInsurance Expense a. $350,000$500,000 b. $350,000$125,000 c. $87,500$125,000 d. $0$500,000 8. For interim financial reporting, an extraordinary gain occurring in the second quarter should be a. recognized ratably over the last three quarters. b. recognized ratably over all four quarters with the first quarter being restated. c. recognized in the second quarter. d. disclosed by note only in the second quarter. *9. How is the average inventory used in the calculation of each of the following?Acid-Test (Quick) RatioInventory Turnover Ratio a. NumeratorNumerator b. NumeratorDenominator c. Not UsedDenominator d. Not UsedNumerator *10. Which of the following ratios is(are) useful in assessing a company's ability to meet current maturing or short-term obligations? Acid-Test RatioDebt to Total Assets Ratio a. NoNo b. NoYes c. YesYes d. YesNo *11. Which of the following ratios should be used in evaluating the effectiveness with which the company uses its assets? Receivables TurnoverPayout Ratio a. YesYes b. NoNo c. YesNo d. NoYes Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | c| 3. | b| 5. | b| 7. | b| *9. | c| *11. | c| 2. | c| 4. | b| 6. | c| 8. | c| *10. | d| | | No. AnswerDerivation 1. cConceptual. 2. cConceptual. 3. bRevenue test: $26,200,000 ? 10% = $2,620,000 Profit test: $4,560,000 ? 10% = $456,000 Asset test: $53,200,000 ? 10% = $5,320,000 A, B, C, E. 4. b($2,500,000 + $750,000) ? 10% = $325,000. 5. bConceptual. 6. c($300,000 + $600,000) ? 2 = $450,000. 7. bExtraordinary loss = $350,000 Insurance expense = $500,000 ? 4 = $125,000. 8. cConceptual. *9. cConceptual. *10. dConceptual. *11. cConceptual.