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2 The U.S. Constitution
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Learning Objectives
By the end of this chapter, you should be able to
• Describe early forms of American government, and explain
how they formed the basis for the
U.S. Constitution.
• Explain the weaknesses of the Articles of Confederation, and
describe how these weaknesses
helped lead to the Constitutional Convention.
• Describe the Constitutional Convention, and analyze the
various proposals presented.
• Analyze separation of powers and checks and balances.
• Describe the debate between Federalists and Anti-Federalists
over the inclusion of a bill of
rights in the U.S. Constitution.
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On October 1, 2013, the U.S. government shut down. This
meant that “non-essential” govern-
ment services—parks and museums, certain regulatory agencies,
and other services—were
suspended while federal employees who performed non-
essential services were instructed
not to work. These services did not resume until October 17,
2013.
What normally causes a government shutdown is a failure
between the president and Con-
gress to agree on a budget. While the Constitution does not
require a budget, the government
cannot function without one. The budget is a legislative process
like any other—majorities
within each house of Congress must pass the same budget while
the president must sign
it for it to take effect. If no agreement is made, then the
government cannot operate and is
effectively shut down, normally in early October because
Congress’s budget designations for
a given fiscal year expire on September 30.
Because Congress has the “power of the purse,” many believe
that the budget originates in
Congress. However, for many years now the practice has been
that the president collects bud-
get estimates and requests from all the agencies and
departments in the executive branch,
puts them together, and then submits a budget proposal to
Congress. Following much debate
and many modifications, Congress then passes a budget,
appropriating, or designating, what
funds can be spent for a specific purpose. The budget then goes
back to the president for his
or her signature. In essence, when the president presents the
proposed budget to Congress,
the president signals to Congress that if the proposed budget is
passed as presented it will not
be vetoed and government will continue to function without
interruption.
In 2013, the U.S. House of Representatives, dominated by
Republicans, disagreed with the
U.S. Senate, composed of a majority of Democrats, on an
appropriations continuing resolution
that would have kept the government running. House
Republicans wanted to delay or defund
the Patient Protection and Affordable Care Act (PPACA)
(discussed in Chapter 1) in exchange
for supporting a budget resolution. The Democratic-led Senate
refused and passed several
resolutions that would maintain current funding levels and
spending cuts. Even if the Senate
had agreed to House demands, President Barack Obama had
threatened to veto any budget
that delayed the PPACA. The Constitution requires that the
president must either accept the
budget as it is or reject the budget because the president may
not veto any part of the budget.
The president may not accept some parts of the budget and
reject others. These fundamental
disagreements caused the government to shut down until a
budget resolution was passed.
Certainly, both sides pointed fingers blaming the other for the
government shutdown—
Republicans blamed Democrats, the House blamed the Senate,
the Senate blamed the House,
and the House blamed the president. In some respects, this was
for good reason: The U.S. Con-
stitution provides that both houses of Congress and the
president cannot operate without the
cooperation of the others. The Framers intended Congress to
have the “power of the purse,”
or control of the nation’s finances. The president can propose a
budget, but he or she cannot
spend public monies unless Congress has appropriated them.
However, the appropriation of
money cannot be final until the president signs it into law. If no
agreement is made, then the
government cannot operate and is effectively shut down.
Why did the Framers not make it easier for the government to
maintain operations? Because
they wanted to incorporate a system of checks and balances, as
well as a system of separa-
tion of powers. If each branch could act on its own without the
agreement of the others, each
might have sufficient power to limit individual liberties. By
dividing power, it would be much
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Section 2.1 Early American Government
more difficult for government to act on much of anything, thus
preserving individual liber-
ties. Checks and balances, as we will see, are the cornerstone of
the American constitutional
system.
As the 2013 shutdown illustrates, there are two ways to look at
checks and balances. One is to
say that the system is a prescription for endless gridlock—in
essence, a political stalemate—
and ineffective government. Another is to view it as a
prescription for government by consen-
sus, because everybody needs to work together to get things
done.
In this chapter, we look at the U.S. Constitution, the process by
which it was formed, and the
rights and restrictions that it provides to the states and to the
American people. As one of the
nation’s foundational documents, the Constitution establishes
the framework for the federal
government. It also functions as a contract between the national
government and the states
that created it.
2.1 Early American Government
The U.S. Constitution is actually modeled on the earlier
governments found in the colonies.
Specifically, it has roots in the early American settlements of
the 1600s. American govern-
ment as it is known today began as something small and private
and evolved into a larger
self-government.
The First English Settlements
The first English settlements in colo-
nial America began as private compa-
nies composed of individuals seeking
economic gain. The first successful
English settlement began in James-
town, Virginia, in 1607, after King
James I granted a charter to the Virginia
Company to establish a settlement in
the Chesapeake region. The Virginia
Company in turn encouraged people
to settle the new colony by offering to
pay their travel expenses. In exchange,
the settlers were expected to send the
company a share of their profits. (The
settlers hoped to find gold, but in the
colony’s early years they primarily col-
lected lumber, tar, pitch, and iron for
export back to England.) By granting
the charter, the king gave the company authority over the
colony, and by sending profit shares
back to the company, the settlers effectively paid taxes. Because
the company was based in
England, the settlers had no more voice in their government
than if the king himself retained
absolute rule.
© Bettmann/Corbis
Colonists arrive in Jamestown, Virginia. King James I
granted a charter to the Virginia Company, which
offered to pay potential settlers’ traveling expenses
to the New World.
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Section 2.1 Early American Government
In the years following the initial Jamestown settlement, more
settlers came to the New World,
and by 1619 there were 11 settlements in Virginia. The Virginia
Company, however, wanted
the colony to grow even faster. To induce more people to come,
the company gave property-
owning male settlers the right to vote and elect their own
assembly, known as the House of
Burgesses. This was the beginning of American self-
government.
Colonial Assemblies
A striking feature of American colonial development was the
lack of control by the British
government. All but one of the colonies had originally been
companies of shareholders or
proprietorships whose authority was based in charters granted
by the Crown. While the
company that received the charter was able to pick a governor
for the colony, the principal
governing institutions were actually the assemblies elected by
the colonists. The assemblies
wielded considerable power, including the right to raise troops,
to levy taxes, and to pass
laws. The one colony that did not develop along these lines was
Georgia. Georgia was the last
colony founded. Its purpose was to serve as a place for debtors
recently released from prison
to go to get a fresh start. Georgia was also established to serve
as a buffer between Florida and
South Carolina to guard against Spanish expansion from
Florida. The name of this last colony
was selected to honor King George II, who granted the charter
for establishing the colony.
The colonies never thought of them-
selves as subservient to the Crown.
Rather, they viewed themselves as
commonwealths, with the assemblies
being the locus of rightful power and
authority. In Plymouth, Massachu-
setts, for instance, the Pilgrims estab-
lished a system of self-government
based on the Mayflower Compact, an
agreement they made on their way to
America in 1620. Under the Mayflower
Compact, the settlers agreed to abide
by the decisions of the majority and
conduct their affairs without outside
interference, especially from the Brit-
ish. The physical distance between America and England left
the colonial assemblies with a
great deal of autonomy.
Injustice, Rebellion, and the Continental Congress
Beginning around 1700, the colonies found themselves absorbed
into the larger conflicts
plaguing Europe. From 1689 through 1763, a series of wars was
fought on the European con-
tinent and had much to do with French expansionist ambitions.
But a component of those
wars was fought in the colonies by British troops. Conflicts
extended into the colonies as part
of the larger fight between colonial factions for more power and
spheres of control.
SuperStock/SuperStock
The Mayflower Compact was a governing document
written by the Pilgrims as they traveled to America.
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Section 2.1 Early American Government
During the late 1700s, the British Crown attempted to impose
its authority and restrict the
liberties of the colonists mostly by imposing new taxes to help
pay for the wars. But some
of the restrictions were limitations on colonial trade as the
British government sought to
protect industry at home. The British Parliament, for instance,
passed the Wool Act in 1699,
which not only increased taxes but also increased control over
colonial trade and production.
American colonies were prohibited from exporting wool to
markets outside the colonies. The
Crown also limited imports of wools and linens from other areas
in the British Empire.
Most colonists saw themselves as good English subjects who
were entitled to the same rights
as their countrymen anywhere else in the world. In England
itself, the English people (but not
the colonists) were represented in the House of Commons, part
of the British Parliament. In
the same vein, the colonists saw the colonial assemblies as their
own representative bodies. It
was one thing for the assemblies to pass laws affecting them.
But it was quite another for the
British Parliament to impose laws on people who were not
represented in that body.
The rallying cry for the American Revolution was “No taxation
without representation,” and
one of the first taxes that would pave the way for war was the
Sugar Act of 1764, which drew
colonists’ anger more because of its economic impact than
because of its political signifi-
cance. The tax hit the colonies during a depression, which many
attributed to the tax itself.
The Stamp Act of 1765 represented an attempt by the British
government to force the colo-
nies to shoulder some of the expense of providing defense
during the French and Indian War.
Colonists had to pay a tax on all printed materials, including
books, newspapers, magazines,
and legal documents, all of which were required to bear an
embossed stamp.
Following the Stamp Act, Parliament passed the Townshend
Acts of 1767, which were even
harsher. Named after Charles Townshend, chancellor of the
British Exchequer (the British
Treasury), these acts imposed new taxes on glass, lead, paper,
paint, and tea. The Townshend
Acts were further reinforcement of Britain’s absolute power to
enact any laws to govern the
colonies. The colonists protested these and other taxes with
boycotts and other forms of pro-
test, including violence. Many violent protests centered on
Boston, and they prompted the
British to send in troops to pacify the city.
Ultimately, most of these taxes were repealed, except for the tax
on tea. Still, the protests con-
tinued, culminating in the Boston Tea Party of 1773. Because
officials refused to return three
shiploads of tea to Britain, a group of colonists boarded English
ships in Boston and dumped
hundreds of chests of tea into Boston Harbor to protest the tax.
This became known as the
Boston Tea Party.
In response to the Boston Tea Party, Parliament passed a series
of laws that colonists called
the Intolerable Acts. The purposes of these acts included
closing the port of Boston until all
of the damage caused by the Tea Party was repaid, putting
Massachusetts under military rule
with more troops arriving in that colony, making it illegal for
royal officials to be brought to
trial in the colonies (and instead holding their trials in
England), ending colonial government
in Massachusetts and allowing the royal governor to appoint the
colonial legislature, and giv-
ing land claimed by Massachusetts, Connecticut, and Virginia to
Canada.
Meanwhile, by 1774, the colonies had established the first
continental legislative body, or
Continental Congress. The British responded by sending even
more troops. The Congress
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Section 2.2 Why a New Constitution?
met briefly in Philadelphia in 1774 and consisted of 56
delegates from all 13 colonies. Most of
the delegates were not ready to separate from the British; rather,
they wanted both the king
and Parliament to treat the colonies more fairly. Early the
following year, however, skirmishes
between armed colonists and British troops turned deadly. By
the time the second Continen-
tal Congress met in May of 1775, the American Revolutionary
War had begun. Although there
were still those who wanted to work something out with Britain,
there was now a growing
movement for independence.
Independence and Confederation
The colonies declared their independence on July 4, 1776, with
the signing of the Declaration
of Independence. The Declaration was nothing more than a
statement announcing separa-
tion—it did not form a government. Actual independence came
only through military vic-
tory, which required, at a minimum, that the newly independent
states remain united. The
Continental Congress raised an army and placed it under the
command of George Washing-
ton (1732–1799). The following year, the Congress drafted the
Articles of Confederation to
unite the states. The Articles were the first U.S. constitution.
Born from a revolutionary spirit
suspicious of strong central government, in which authority
would be concentrated in a
single entity, the Articles of Confederation created a “firm
league of friendship” (a phrase from
Article III of the Articles) among the states.
The Articles invested the greatest power in the individual states
and left the new national
government weak and powerless. The revolution was a rebellion
against strong centralized
power; therefore, it was inevitable that the colonists would not
form a government with
strong central authority. But the Articles proved inadequate to
maintain unity, and, shortly
after the War of Independence was over, the confederation
began to unravel.
2.2 Why a New Constitution?
The Articles had three fatal flaws. First and foremost, they
failed to give the national govern-
ment the power of the purse, meaning that they granted the
government neither the power
to levy taxes directly on the people nor the power to force the
states to pay their share of
expenses. The national government could not even tax to pay its
war debts. Second, any
amendments to the Articles required the unanimous approval of
the state legislatures. And
third, they did not provide for a chief executive to carry out
essential tasks and deal with
crises.
The main problem with the Articles of Confederation was the
absence of strong central
authority. This meant that the United States would have no
common defense if it were
attacked. An individual state could easily be overrun by a
foreign government. The absence of
central authority was a problem for another reason as well. The
new government could not
regulate commerce, and that threatened the development of a
national economy.
Associated Press
The Articles of Confederation, shown here, were
adopted by the Continental Congress in 1777.
However, wariness of central authority resulted
in a weak, unworkable national government,
and many agreed the Articles would need to be
revised.
fin82797_02_c02_023-052.indd 28 3/24/16 1:39 PM
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Section 2.2 Why a New Constitution?
The Constitutional Convention, where
delegates would meet to revise the Arti-
cles and eventually draft the U.S. Con-
stitution, was actually preceded by the
Annapolis Convention. A small group of
delegates met at Annapolis, Maryland, in
September 1786 to address another one
of the failings of the Articles: the lack of
authority to impose uniform commercial
regulations among the states. This meet-
ing had been called into session by the
Continental Congress but was not really
a proper convention. Only 12 delegates
from five of the 13 states showed up,
which meant that the delegates had no
authority to do anything and their deci-
sions would not represent the will of all
of the states.
Those who did show up had some
strong views about what needed to be
done. James Madison (1751–1836) and
Edmund Randolph (1753–1813), both
of Virginia, and Alexander Hamilton
(1755–1804) of New York, all of whom
would attend the Constitutional Conven-
tion, were convinced that the new nation
needed much stronger central authority.
Hamilton wrote to the Continental Con-
gress on behalf of Madison, Randolph,
and himself, requesting that the states
appoint commissioners to meet in Philadelphia to consider these
matters. Those in Annapo-
lis, especially Madison and Hamilton, wanted to overhaul the
Articles and create a whole new
government.
Some of the Framers were also concerned that a fragmented
confederation would make it
more difficult, if not impossible, to create a national economy.
Without a central authority reg-
ulating interstate commerce, each state was free to establish its
own tariffs. These applied
equally to the other states, just as they did to other nations. A
national economy would require
uniform standards and a central authority empowered to enforce
them.
In the early 20th century, historian Charles Beard (1913) argued
that the Constitution was
more about serving the economic interests of the Framers than
the lofty philosophical and
ethical principles found in the Declaration of Independence. As
far as Beard was concerned,
the Framers sought to promote commerce and protect their
property from radical state leg-
islatures. It is certainly true that those who participated in the
Constitutional Convention
were wealthy men who were concerned about the absence of
national regulatory authority
on matters of commerce.
met briefly in Philadelphia in 1774 and consisted of 56
delegates from all 13 colonies. Most of
the delegates were not ready to separate from the British; rather,
they wanted both the king
and Parliament to treat the colonies more fairly. Early the
following year, however, skirmishes
between armed colonists and British troops turned deadly. By
the time the second Continen-
tal Congress met in May of 1775, the American Revolutionary
War had begun. Although there
were still those who wanted to work something out with Britain,
there was now a growing
movement for independence.
Independence and Confederation
The colonies declared their independence on July 4, 1776, with
the signing of the Declaration
of Independence. The Declaration was nothing more than a
statement announcing separa-
tion—it did not form a government. Actual independence came
only through military vic-
tory, which required, at a minimum, that the newly independent
states remain united. The
Continental Congress raised an army and placed it under the
command of George Washing-
ton (1732–1799). The following year, the Congress drafted the
Articles of Confederation to
unite the states. The Articles were the first U.S. constitution.
Born from a revolutionary spirit
suspicious of strong central government, in which authority
would be concentrated in a
single entity, the Articles of Confederation created a “firm
league of friendship” (a phrase from
Article III of the Articles) among the states.
The Articles invested the greatest power in the individual states
and left the new national
government weak and powerless. The revolution was a rebellion
against strong centralized
power; therefore, it was inevitable that the colonists would not
form a government with
strong central authority. But the Articles proved inadequate to
maintain unity, and, shortly
after the War of Independence was over, the confederation
began to unravel.
2.2 Why a New Constitution?
The Articles had three fatal flaws. First and foremost, they
failed to give the national govern-
ment the power of the purse, meaning that they granted the
government neither the power
to levy taxes directly on the people nor the power to force the
states to pay their share of
expenses. The national government could not even tax to pay its
war debts. Second, any
amendments to the Articles required the unanimous approval of
the state legislatures. And
third, they did not provide for a chief executive to carry out
essential tasks and deal with
crises.
The main problem with the Articles of Confederation was the
absence of strong central
authority. This meant that the United States would have no
common defense if it were
attacked. An individual state could easily be overrun by a
foreign government. The absence of
central authority was a problem for another reason as well. The
new government could not
regulate commerce, and that threatened the development of a
national economy.
Associated Press
The Articles of Confederation, shown here, were
adopted by the Continental Congress in 1777.
However, wariness of central authority resulted
in a weak, unworkable national government,
and many agreed the Articles would need to be
revised.
fin82797_02_c02_023-052.indd 29 3/24/16 1:39 PM
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resale or redistribution.
Section 2.3 The Constitutional Convention
Others, such as Alexander Hamilton, stressed the public interest
of what they called a “com-
mercial republic,” the view that the nation’s public interest was
in part defined by free trade
and commercial activity, and that this interest could be served
by individuals freely pursuing
their economic self-interests unfettered by government. By
crafting a document that estab-
lished the authority of Congress to regulate interstate commerce
while establishing that laws
coming from Congress would be the supreme laws of the land,
the Framers could create a
national government with real power. These views represented
Hamilton’s views about gov-
ernment regulation of the economy.
2.3 The Constitutional Convention
The Constitutional Convention convened in Philadelphia during
the summer of 1787 at the
direction of the Continental Congress, although the
deliberations were kept secret. Dele-
gates were charged only with revising the Articles, but it was
out of this convention that the
U.S. Constitution would emerge.
Who Came to the Convention?
Many of those attending the Convention had already achieved
great prominence. Several were
older and wealthy, while others were relatively young. Because
the convention debates were
held in secret, only a few people recorded the proceedings. One
of these persons was James
Madison, who is commonly regarded as the father of the U.S.
Constitution. Madison devel-
oped, among other provisions, the constitutional system of
checks and balances. He, along
with Hamilton, pushed for strong national authority.
Most of the other convention delegates came with
a strong sense of duty to represent their respec-
tive states. Although there was general agreement
that the Articles were unworkable, disagreements
arose over how to replace them. Madison, for
instance, wanted to overturn equal representation
of the states. Others argued the need for a strong
executive. Delegates from slave states wanted
their slaves to be counted in the population so that
their states would enjoy greater representation in
the as-yet-undeveloped national legislature.
In addition to a strong central government, del-
egates to the Constitutional Convention wanted
a system that employed checks and balances. The
delegates did not trust the masses to govern them-
selves yet believed that a legitimate government
could exist only if it rested on popular sovereignty.
The delegates wanted a government that would
be close to the people while at the same time free
to make decisions on behalf of the nation without
The White House Historical Association
Like Hamilton, James Madison believed
in a strong central government. He
helped formulate the Virginia Plan.
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Section 2.3 The Constitutional Convention
securing public approval for those decisions. To the extent that
they sought to establish a
democracy, it was to be a representative democracy consistent
with republican principles.
They outlined these goals in large part due to their experiences
with the British government.
At the same time, the delegates wanted to create a durable
system of government that would
withstand the test of time. They could achieve this goal if they
created a general and broad
document that avoided specifics. In this way, the Constitution
could be applied to future cir-
cumstances. The Preamble of the Constitution declares the basic
goals of government, while
the seven articles of the Constitution that follow the Preamble
establish general rules by
which government institutions would operate, but the Framers
purposely avoided establish-
ing procedures for governing.
Initial Constitutional Proposals
Most of the Framers wanted to create a republican government,
but different factions still had
different ideas of what they wanted to accomplish, as well as
how everyone’s interests should
be represented. For example, the delegates confronted the
contentious issue of how both the
large and small population states would be represented in the
legislature. Under the Articles,
each state was represented in the legislature by one vote, which
put all states, regardless of
population, on equal footing. Should the new constitution
continue providing equal represen-
tation for each state regardless of size or population, or would
representation be proportion-
ate to population, with larger states having more votes than less
populous ones?
Democratic principles required that larger states have greater
representation. But that was
a more difficult issue than it appeared. Many large states, such
as Virginia, were also slave
states. Would the slave population in those states contribute to
the population numbers that
determined their representation? Slaves were not considered
citizens, and to have them
included would, at least in the minds of the small states, give
the large states an unfair advan-
tage. There was also the issue of state sovereignty, or self-
determination. For each state to
have one vote, as they did under the Articles of Confederation,
was for each state to be equal
in its sovereignty. This meant that each state had equal power to
participate in national deci-
sions. Would state sovereignty be similarly respected in the new
national government? Small
states believed that if they lost their equality in the legislature
that their residents would also
lose their political voice, or sovereignty, in the national
government. If the large states gained
power in the new government (and if this new power was
enhanced by counting slaves among
the state populations), the small states would be overshadowed
by the large states and resi-
dents of the small states would lose their sovereignty in the
proposed system.
Related to this question was the issue of the chief executive and
how powerful that executive
would be. A powerful national chief executive could also
threaten state sovereignty because
the chief executive would govern the nation despite state-level
differences. For some, the idea
of a chief executive evoked images of a king with centralized
power and authority who could
call on national troops to force his will on the states, something
not provided for in the Arti-
cles. But the absence of the legislature during a time of crisis
meant that no one could act.
In the previous chapter, we defined politics as who gets what,
when, and how, and the Con-
stitution would determine exactly that. As lofty as the principles
and values of the Framers
may have been, each delegate to the Constitutional Convention
was also concerned with the
interests and relative positions of his state.
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Section 2.3 The Constitutional Convention
Virginia Plan
During the convention, James Madison joined with two of
Virginia’s other delegates, George
Washington and Governor Edmund Randolph, to introduce a
system that provided for a
strong central government. The proposal came to be known as
the Virginia Plan, which
was drafted by Madison and presented to the convention by
Edmund Randolph. (Because
Randolph presented it, it also came to be known as the
Randolph Plan.) Under the plan, the
people would select the House of Representatives as a practical
expression of democracy. Its
members would be close to the people and would stand for
regular elections. Because the
number of representatives each state had in the House was to be
determined by its popula-
tion, the plan favored large states such as Virginia. The
legislature’s upper chamber, the Sen-
ate, would be selected by the House of Representatives, and the
legislature as a whole would
choose the president.
The Virginia Plan did not specify terms of office, but it did seek
to limit the executive and
members of the House to one term. Moreover, it called for an
independent judiciary. The plan
included other checks and balances. It allowed for legislative
acts to be vetoed by a council
composed of the executive and selected members of the judicial
branch. Their veto could, in
turn, be overridden by an unspecified legislative majority.
Large states supported the Virginia Plan because it would grant
them greater representation.
The smaller states were generally opposed because they were
afraid that they would lose
substantial power in the national government. Among the
provisions that worried many of
the states was one that would have empowered the national
government to use military force
against those states that might otherwise refuse to comply with
national authority.
The New Jersey Plan
Those opposed to the Virginia Plan favored an
alternative that arose from the New Jersey delega-
tion. One member of that delegation, William Pat-
erson (1745–1806), intended to block any nation-
alist plan to overhaul the Articles of Confederation.
He launched an assault on the Virginia Plan. He
was particularly concerned about proportional
representation—the idea that large states would
have more representatives than the small ones. He
believed that the large states would dominate the
small states and that Virginia specifically intended
to undermine the other states’ sovereign powers.
As a counterproposal, he, along with David Brear-
ley of New Jersey, Roger Sherman of Connecticut,
Luther Martin of Maryland, and John Lansing of
New York, offered what came to be known as the
New Jersey Plan. Whereas the Virginia Plan called
for a supreme national government, the New Jer-
sey Plan called for one that would be distinctly
© Bettmann/Corbis
William Paterson was the main architect
of the New Jersey Plan. The plan called
for a federal government, with pow-
ers divided between national and state
governments.
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Section 2.3 The Constitutional Convention
federal, with carefully listed powers divided between national
and state governments. This
meant that a federal government would be the combination of
the states and the national gov-
ernment, whose power and authority would, in effect, be shared.
Under this proposal, there
would be a single-chamber national legislature in which each
state, regardless of size, would
have one vote.
Paterson’s intention was to protect the power of smaller states.
While the plan would grant
the new government the power to levy taxes on imports and to
regulate trade and commerce,
the representation of individual states would be no different
from how it had been under
the Articles of Confederation. Under the New Jersey Plan, the
“federal executive” would be
elected by the individual states represented in Congress. Again,
this was consistent with the
executive committee system under the Articles. Nationalists
such as Madison thought that
the proposal represented a backward step. For a full month, the
Convention was deadlocked
between large-state nationalists and small-state defenders.
Connecticut Plan and the Great Compromise
As a compromise, Roger Sherman and Oliver Ellsworth of
Connecticut proposed the Con-
necticut Plan (also known as the Great Compromise), which,
like the Virginia Plan, would
create a bicameral legislature. This plan was designed to please
both nationalists and states’
rights proponents. As with the Virginia Plan, representation in
the House of Representatives
would be based on population, with each member representing a
district of a specified num-
ber of persons. Larger states would have more representatives
than smaller states would. To
foster closeness between representatives and the people, House
members would serve for
2 years and then stand for reelection. The Connecticut Plan also
indicated that all bills for
raising taxes had to originate in the House of Representatives.
To ensure that each state would
get the number of representatives to which it was entitled, a
census of all inhabitants of the
United States was to be taken every 10 years.
The Senate was designed to be similar to the body
proposed by the New Jersey Plan. The Senate would
specifically represent the states. In recognition of
their equal sovereignty, each state would have two
seats, regardless of population. Contrary to the Vir-
ginia Plan, which envisioned the House selecting
senators, the Connecticut Plan allowed for members
to be directly chosen by their respective state legis-
latures (a practice that would be replaced by the 17th
Amendment, ratified in 1913, which provided for
the popular election of U.S. senators). Senators
would serve for terms of 6 years. A 6-year term
would suggest that senators would not have to
worry about reelection soon after taking office, so
they would have greater opportunity to think about
the larger public interest. Senate terms would also
be staggered so that one third of the Senate would
be up for election every 2 years. Elections would
Universal Images Group/Getty Images
The Connecticut Compromise, painted
by Bradley Stevens, depicts Roger
Sherman, left, and Oliver Ellsworth
drafting the Connecticut Plan, which
called for senators to be appointed by
their respective legislatures.
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Section 2.3 The Constitutional Convention
take place in even-numbered years. Because only a portion of
the Senate could potentially be
replaced, there would be stability and continuity. Figure 2.1
compares the Virginia Plan, the
New Jersey Plan, and the Great Compromise.
Figure 2.1: Comparing the plans
The Great Compromise included elements of both the Virginia
and the New Jersey Plans.
Adapted from http://chogger.com/fhMeb/great-compromise
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Section 2.3 The Constitutional Convention
The Electoral College
Madison initially wanted the executive to be chosen by the
legislative body. He believed that,
because the executive implements legislative actions, the
executive should be responsive to
it. Further, the concept of a president was that of somebody who
presided over legislative
hearings. Opponents claimed that this proposal was inconsistent
with republican principles
of separation of powers. The Framers were also not ready to
allow the people to directly elect
the president because they were not convinced that the people
could make rational, dispas-
sionate decisions. Meanwhile, the states wanted a say in
selecting the president even though
the Framers believed that the states would have too much power
if they chose the president.
As a compromise, the Framers created the Electoral College as
the body responsible for elect-
ing the president. The U.S. Constitution does not outline how
electors are chosen, nor does
it state what role, if any, the popular vote will play in
determining how electors vote when
selecting the president. Almost all states require the candidate
who wins the popular vote in
the state to earn all of that state’s Electoral College votes (the
“winner-take-all” system, which
is in place in 48 states), while other states (Nebraska and
Maine) use a district system for allo-
cating Electoral College votes based on the popular vote. The
number of members of Congress
representing any state equals the number of electors
representing that state in the Electoral
College. In practical terms, then, the president is indirectly
chosen by the people.
The Framers actually hoped that this peculiar system would not
work. To win the presidency,
a candidate would have to receive a majority of electoral votes.
In the elections of 1796 and
1800, this meant that a minimum of 70 electoral votes were
needed to win a presidential
election. (Today, out of 538 electors, 270 are needed to win; see
Figure 2.2. The number of
available electoral votes has been 538 since 1964 because the
District of Columbia was given
three electoral votes with the 23rd Amendment in 1961. There
are 435 members of the U.S.
House of Representatives and 100 senators.) At the time, a
presidential election consisted
of several candidates. The candidate receiving the second-
highest number of electoral votes
became the vice president. The Constitution provides that if the
Electoral College fails to
select a president, the House of Representatives selects the
president and the Senate selects
the vice president. Each state receives one vote in both
decisions. Virginia Plan supporters
wanted presidential elections to happen this way.
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Section 2.3 The Constitutional Convention
Figure 2.2: The Electoral College
The Constitution called for the national executive to be chosen
by the Electoral College rather than being
directly elected by the people. Note that North Carolina and
Rhode Island had not yet ratified the
Constitution by the 1789 election, and New York did not choose
electors for this election.
Data from “2012 Presidential General Election Results,” by D.
Leip, 2012 (http://uselectionatlas.org/RESULTS/index.html)
and “U.S.
Electoral College,” by National Archives and Records
Administration, n.d. (http://www.archives.gov/federal-
register/electoral-college
/votes/1789_1821.html#1788).
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Section 2.3 The Constitutional Convention
The Three-Fifths Compromise
The Connecticut Plan also offered a
compromise between free and slave
states. Slave states, such as Virginia,
had larger populations because they
had slaves (see Figure 2.3). William
Paterson was particularly opposed to
including slaves in the state’s popula-
tion because doing so would indirectly
encourage the slave trade. The Con-
tinental Congress had initially pro-
posed a three-fifths ratio for counting
“all other persons” (to avoid using the
term “slave”; persons, whether free or
slave, included men, women, and chil-
dren for Census purposes) as the basis
for apportioning legislative representation. In pointing this out
at the Convention, Paterson
called attention to the hypocrisy of the Virginia delegation,
which viewed slaves as people
only when it came to demanding more representation. The
hypocrisy irked him all the more
deeply, perhaps, because Paterson himself was a slave owner.
Stepping into the breach, Rufus
King of Massachusetts asked the delegates to reaffirm their
earlier support of the three-
fifths ratio. As King saw it, Northern commercial states would
benefit from a more powerful
national government that could regulate trade. In return,
Paterson was willing to offer the
South some representation for their slave wealth.
This imperfect bargain recognized a hard political reality
between states seeking to main-
tain slavery and those that preferred to fashion a new
constitution without it. What followed
was a debate focusing on individual state interests rather than
moral concerns about slavery.
Under the Three-Fifths Clause, every five slaves were counted
as though they were three free
citizens for the purposes of increasing representation in slave
states. The 13th Amendment
abolished slavery, which nullified the Three-Fifths Clause.
SuperStock/SuperStock
The Connecticut Plan offered a compromise
between slave and free states by counting each slave
as three fifths of a person.
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Section 2.3 The Constitutional Convention
What the Framers Attempted to Achieve
Consider that the Framers wanted a government that would be
durable. There was a high
probability that the Constitution, being an experiment in liberty,
would fail. Durability, they
believed, would be achieved through the republican principle of
separation of powers. By
dividing power among three branches of government, checks
and balances could be insti-
tuted so that no one branch would have enough power to govern
without the cooperation
of the others. And, no one branch would have sufficient power
to violate individual liberties.
Ultimately, the Framers sought to create a constitutional system
that would govern through
consensus. The U.S. Constitution’s survival for more than 200
years demonstrates that the
Framers’ work was nothing short of remarkable.
Figure 2.3: Slave populations
Because slaves made up a substantial portion of the population
in many slave-holding states, delegates
from those states pushed to count those individuals toward their
total population. Members from non-
slave-holding states objected on the grounds that it would result
in disproportionate representation and
possibly encourage the continuation of slavery. In the end, both
sides agreed to the Three-Fifths Clause as
part of the Great Compromise.
Joeryancivilwar.com
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Section 2.3 The Constitutional Convention
The U.S. Constitution requires that laws be enacted with the
approval of both legislative
chambers. The check of a bicameral legislature makes
consensus difficult because each
chamber represents different constituencies. A senator takes a
statewide approach, while a
House member represents 30,000 persons in a single district.
Achieving consensus through
separation of powers ideally results in a government achieving
some republican virtue. Coop-
eration is further achieved through the shared functions of
appointments and treaty mak-
ing. The executive initiates both actions, although both require
Senate approval. Because of
the requirement for elected senators to approve these actions,
the president’s opportunities
to impose his or her will and abuse his or her power through
these processes are limited.
Rejected treaties (e.g., the Treaty of Versailles, which formed
the League of Nations in 1920)
or nominations (e.g., U.S. Supreme Court Associate Justice
nominee Robert Bork in 1987) can-
not be vetoed or overturned.
The Constitution retains strict separation between the branches
by prohibiting dual office
holding. One may not hold an executive branch position while
still holding a seat in Congress
or on the U.S. Supreme Court. Members of Congress who are
appointed by the president to
serve in the Cabinet or on the Supreme Court must resign their
legislative positions.
Continuity and Change With the British Constitution
The Framers sought to create
a constitutional system similar
to the constitutional monarchy
from which they had separated.
They wanted something that
would reflect the mixed consti-
tution they knew while devel-
oping the separation of powers
to accomplish this objective.
The institutions they created
were not radically different
from their British counterparts.
The U.S. House of Represen-
tatives resembled the British
House of Commons, while the
U.S. Senate reflected the elite
notion of the British House of
Lords. The U.S. executive par-
alleled the British monarchy,
although the U.S. executive
would not hold a hereditary
title. What the Framers accom-
plished, then, was a cleansing of
British institutions built on republican foundations while
maintaining continuity with what
they saw as the best of British traditions.
Juergen Schonnop/iStock/Thinkstock
The Framers created institutions that were not radically
different from those of the British Parliament. The U.S.
House of Representatives was modeled on the British
House of Commons, while the Senate was similar in some
ways to the House of Lords.
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Section 2.4 The Three Branches of Government
2.4 The Three Branches of Government
The U.S. Constitution is structured around the fundamental
principle of separation of powers,
the idea that one way to prevent abuse of power, or tyranny, is
to separate government pow-
ers. The lawmaking process is the greatest of government
powers. Consequently, Article I, the
legislative branch, is introduced first, followed by the executive
branch outlined in Article II.
It is the responsibility of the executive branch to enforce the
laws enacted by the legislative
branch. The judiciary branch, outlined in Article III, is
responsible for resolving legal disputes
and adjudicating the laws. Table 2.1 provides a brief listing of
some of the branches’ different
functions, or powers.
Table 2.1: Branch powers
Legislative Executive Judicial
• Coin money
• Levy taxes
• Raise armies
• Regulate interstate commerce
• Declare war
• Confirm presidential
appointments
• Ratify treaties
• Impeach and remove presi-
dents and judges
• Do what is “necessary and
proper”
• Act as commander in chief of
the military forces
• Execute laws
• Negotiate treaties
• Appoint judges
• Appoint ambassadors
• Issue pardons
• Veto legislation
• Conduct foreign policy
• Do what is “necessary and
proper”
• Review laws made by the
legislative branch
• Engage in constitutional
review
• Settle disputes between states
and national government
The Legislative
Congress, the legislative branch, is considered the first branch
of government. Article I estab-
lishes that the Congress will be composed of two chambers: a
House of Representatives and
a Senate.
Article I, Section 8 deals with the expressed powers of
Congress. Among other powers, the
U.S. Constitution gives Congress the authority to
• impose and collect duties and other taxes necessary to pay
national debt and pro-
vide for the common defense;
• borrow money on U.S. credit;
• regulate commerce with foreign nations and among the states
of the union;
• establish uniform rules of naturalization and bankruptcy;
• coin money and determine its value;
• establish post offices and post roads;
• promote the progress of science and useful arts by issuing
patents;
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Section 2.4 The Three Branches of Government
• create courts and tiers of courts below the Supreme Court;
• declare war, raise and support armies, and provide and
maintain a navy;
• establish rules for government and regulations of land and
naval forces;
• call forth the militia to execute laws of the union and suppress
insurrections and
defend against foreign invasions;
• organize, arm, and discipline the militia;
• exercise exclusive legislation in all cases whatsoever over the
district that is to
become the national seat of government (Washington, D.C.);
and
• “make all Laws which shall be necessary and proper for
carrying into Execution the
foregoing Powers, and all other Powers vested by this
Constitution in the Government
of the United States, or in any Department or Officer thereof.”
This last power forms the basis for expansive congressional
authority, known as the implied
power. The implied power means that, lacking expressed power,
Congress may take action if
it is “necessary and proper” for fulfilling its expressed powers
and obligations. One example
is a national bank. While Article I does not empower Congress
to create a national bank, Con-
gress has inferred that right on the grounds that doing so would
be necessary for Congress to
fulfill its expressed power of coining money.
The Executive
The executive branch is considered the second branch of
government. Article II of the Consti-
tution establishes that executive power shall be vested in the
president of the United States,
whose term of office will be 4 years. It then establishes the
procedures for presidential selec-
tion through the Electoral College.
When the president enters office,
he or she is required to take the fol-
lowing oath: “I do solemnly swear (or
affirm) that I will faithfully execute
the Office of President of the United
States, and will to the best of my Abil-
ity, preserve, protect, and defend the
Constitution of the United States.”
Article II, Section 2 establishes the
president as the commander in chief
of the armed forces. As commander
in chief, the president is said to have
the power of the sword, which has
also come to reflect the president’s
power and authority to enforce
national laws. The president’s com-
mander in chief power has histori-
cally been the basis for presidential
prerogative, which will be discussed
Scott Andrews-Pool/Getty Images
Supreme Court Chief Justice John Roberts adminis-
ters the presidential oath of office to Barack Obama
on January 20, 2013. The president’s principal pow-
ers are to serve as commander in chief of the armed
forces, enforce the laws passed by Congress, and pro-
tect and defend the Constitution.
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Section 2.4 The Three Branches of Government
further in Chapter 5. For example, during the Civil War (1861–
1865), President Abraham Lin-
coln did not have the stated authority to use military force
against states that sought to leave
the union. He justified his action by arguing that preserving and
protecting the Constitution
would be meaningless if there were no union.
Article II also gives the president the authority to make treaties
with foreign governments
subject to the advice and consent of the Senate (ratification) and
to make Cabinet appoint-
ments and ambassador and judicial appointments, all of which
require Senate confirmation.
The president is also required to give Congress information on
the state of the union “from
time to time.” By tradition, this has been an annual report.
(Since 1913, with President Wood-
row Wilson, the state of the union has been delivered in a
speech before a joint session of
Congress. Prior to that, presidents would typically send a
written report and a clerk would
read it before the Congress.)
Article I, Section 7 gives the president the power to veto bills
passed by Congress. Hamilton
viewed the presidential veto as a protection against legislative
overreach, such as when Con-
gress abused its power in the legislative process. The first
presidents rarely used the veto.
George Washington vetoed two bills, while James Madison used
the power five times. More
recently, President George W. Bush (2001–2009) vetoed 12
bills, while President Bill Clinton
(1993–2001) used it 37 times. Congress can override a
presidential veto with a two-thirds
vote in both chambers.
One key feature of the separation of powers is the procedural
due process level of cooperation
needed to remove an executive from office. Unlike a
parliamentary system, such as in contem-
porary England, where the head of the government can be
removed through a no-confidence
vote, the only mechanism for removing the president is
conviction following impeachment,
or an accusation of wrongdoing. The president may be removed
for “Treason, Bribery, or other
high Crimes and Misdemeanors.” The U.S. House of
Representatives has the power of impeach-
ment, while the U.S. Senate holds trials that may lead to
conviction.
Removing a president requires a coordinated effort between the
House and the Senate. The
House of Representatives first votes on articles of impeachment.
If passed, the president is
tried by the U.S. Senate with the U.S. Supreme Court chief
justice presiding. Conviction requires
a two-thirds vote in the Senate. If convicted, the president is
removed from office, and the vice
president is sworn in. The bar for impeachment is so high that it
is rarely implemented. Only
two presidents (Andrew Johnson in 1868 and Bill Clinton in
1998) have been impeached, and
both were acquitted by the Senate. Still, members of Congress
may threaten the president
with initiating impeachment proceedings in hopes that the
president’s behavior will change.
The Constitution also provides for electing the vice president.
Electing the president and vice
president together on the same ticket did not originate with the
Constitution, which was writ-
ten to give the presidency to the person with the most electoral
votes and the vice presidency
to the person coming in second. In 1804, the Constitution was
amended so that the president
and vice president would be chosen together on a single ticket.
The Judiciary
Article III outlines the national court system and establishes
that the judicial power be vested
in one Supreme Court and other lower courts as determined by
Congress. Supreme Court
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Section 2.4 The Three Branches of Government
authority extends to all cases in law arising under the
Constitution, the laws of the United
States, and treaties. Cases involving disputes between the
national and state governments, or
between the national government and foreign governments, are
heard by the Supreme Court.
The president appoints Supreme Court justices for life “with
good behavior.” Senate confirma-
tion requires a majority vote. This is simply another example of
the Framers’ system of checks
and balances (see Figure 2.4 for an illustration of how the three
branches check and balance
one another).
The Constitution says little else about the judiciary or its
authority, in part because the Fram-
ers thought that this branch would be little used. We commonly
associate the Court’s power
of judicial review with the Constitution. However, the Supreme
Court gave itself the power of
judicial review in 1803, after the Constitution took effect.
While the Framers expected the
judiciary branch would be the weakest of the three branches, we
now look at the national
court system as being extremely powerful.
Figure 2.4: The three branches of government
Forming three separate branches of government, the executive,
the legislative, and the judicial, ensures
that the rights and liberties of the people are protected, and no
one branch has too much power. The
legislative branch (which includes the Senate and House of
Representatives) creates the laws; the
executive branch (which includes the president, vice president,
and Cabinet) carries out the laws; and
the judicial branch (which includes the Supreme Court and other
federal courts) evaluates the laws. Each
government branch checks another, thus establishing a strong
and fair national government.
Used with permission from David Miller.
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Section 2.5 Ratifying the Constitution
The Basis for National Power
The Constitution establishes national power through both the
Supremacy Clause in Article VI
and the Commerce Clause in Article I. The Supremacy Clause
states that laws passed by Con-
gress and signed by the president are the supreme laws of the
land. The Commerce Clause
allows Congress to regulate the movement of goods across state
lines, seeking to solve one of
the problems experienced under the Articles of Confederation.
Both of these clauses will be
discussed in more detail in Chapter 3.
The American Constitution as a Living Document
Article V of the Constitution provides a constitutional
amendment process, although the pro-
cess is not easy, because it requires supermajorities to succeed.
The Constitution provides
for amendments to be proposed by a two-thirds vote in each
house of Congress or at a con-
vention called by two thirds of the states. Amendments may be
ratified by three fourths of
the state legislatures or three-fourths ratifying conventions in
the states. The Congress-state
legislature combination has been used for 26 of the 27 ratified
amendments.
The Framers also designed the Constitution to maintain a degree
of continuity. Unlike many
state constitutions, which are long and detailed, the U.S.
Constitution is short and ambiguous.
This allows for its interpretation and reinterpretation. The
Constitution is as relevant today
as it was when it was written more than 200 years ago, despite
the vast differences between
then and now.
2.5 Ratifying the Constitution
There was considerable debate over how the Constitution should
be ratified. Some believed
that it should be ratified through the unanimous approval of the
states (after all, it would
amend, quite significantly, the Articles of Confederation, which
required unanimous approval).
Others argued that each state should hold its own convention to
approve it. The latter argu-
ment prevailed. The next question considered how many states
would be needed to approve
it. Requiring that all 13 states approve the Constitution might
make ratification impossible, as
one state could withhold its approval to undermine the entire
process (that Rhode Island did
not send a representative to the Constitutional Convention
should be noted; it feared losing
power if the Articles of Confederation changed). Roger
Sherman of Connecticut argued that at
least 10 states ratifying was needed to be legitimate. Madison
proposed a complicated formula
where ratification would occur with any seven states entitled to
at least 33 members of the
House of Representatives. This approach favored large states.
The delegates agreed to nine
states (roughly two thirds). By deciding on nine states and using
specially elected conventions,
the delegates made ratification easier, though some argued that
requiring the support of only
nine states violated the spirit of the resolution that authorized
the Convention in the first place.
Federalists Versus Anti-Federalists
One critical debate surrounding the ratification of the new
constitution occurred between
Federalists and Anti-Federalists over the issue of the national
Bill of Rights. Federalists
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Section 2.5 Ratifying the Constitution
argued that a national bill of rights was unnecessary because
many states already had bills of
rights in their own constitutions. Protecting individual rights
would occur at the state level.
The federal government, they argued, would be concerned only
with relations between the
states and the national authority.
The Federalists maintained that a
national bill of rights would threaten
individual liberties because the Con-
stitution created a blueprint for lim-
ited government. To include a sepa-
rate bill of rights implied that the
national government had powers
and authority that were not speci-
fied in the Constitution. If the Con-
stitution had to spell out what the
national government could not do,
the implication was that anything
not covered would then be allowed.
The Anti-Federalists countered that,
because many states already had
bills of rights, it was that much more
important to have a national bill of
rights in order to protect the states.
Including a bill of rights would make
it clear what the national govern-
ment could not do.
Consider freedom of speech. To pro-
hibit the government from infring-
ing on free speech does not imply that the government could
infringe on free speech in the
absence of an express prohibition, Anti-Federalists argued.
Rather, the authority to prohibit
speech could be assumed based on the Constitution’s silence on
questions of free speech.
Put differently, the national government would assume that it
had specific powers unless the
Constitution clearly prohibited them. In the minds of the Anti-
Federalists, the absence of a
bill of rights would enable the national government to violate
individual rights as well as
states’ rights. Moreover, the Anti-Federalists stated that they
would oppose ratification unless
there was a bill of rights. Ultimately, James Madison promised
to seek ratification of the Bill of
Rights 2 years after the Constitution was ratified.
The Bill of Rights
The Bill of Rights consists of 10 amendments (see Figure 2.5)
that establish rights of expres-
sion (speech, press, peaceable assembly, petitioning the
government, and religious exercise
and that Congress will not establish a national religion), the
rights of those accused of crimes
(including, but not limited to, the right to jury trials and counsel
in criminal cases, due pro-
cess, and protection from unreasonable search and seizure, self-
incrimination, and cruel and
unusual punishment), the right to bear arms, and states’ rights.
When ratified in 1791, the Bill
of Rights applied only to the national government (note that the
first word of the Bill of Rights
is “Congress,” the national legislature), although U.S. Supreme
Court decisions since then
Superstock/Superstock
The original Bill of Rights. Federalists argued that a
bill of rights was unnecessary, while Anti-Federalists
argued against ratification without one.
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Section 2.5 Ratifying the Constitution
have applied provisions of the Bill of
Rights to the states on a case-by-case
basis, beginning in 1925 with Gitlow
v. New York.
Or consider the Second Amendment,
which states, “A well-regulated Mili-
tia, being necessary to the security of
a free State, the right of the people
to keep and bear Arms, shall not be
infringed.” The Anti-Federalists con-
sidered these rights to be crucial to
the integrity of state sovereignty
because they meant that the national
government could not interfere with
the right of the people to bear arms
individually and as members of their
state’s militia.
The purpose of the Bill of Rights, then,
was to protect state sovereignty. By
prohibiting the national government
from only certain actions, the states
were free to do what they wanted
unless they were forbidden to do so
by the Constitution or the Supremacy
Clause. The 10th Amendment, known
as the states’ rights amendment, says,
“The powers not delegated to the United
States by the Constitution, nor prohib-
ited by it to the States, are reserved
to the States respectively, or to the
people.” In essence, the 10th Amend-
ment allows the states to do what they
want unless they are forbidden by the
national government to do so.
Interpretation of the Bill of Rights by
the U.S. Supreme Court began to change
dramatically following ratification of
the 14th Amendment in 1868. The
Supreme Court has since established
that no state may deny citizens their
privileges and immunities and equal
protection of the law. Since ratification
of the 14th Amendment, the Supreme
Court applies the Bill of Rights to the
states on a case-by-case basis (called
“selective interpretation”).
Superstock/Superstock
The Second Amendment gives the right for state
residents to bear arms. In effect, it means that the
national government cannot disarm the states, and it
cuts to the core of the issues of state sovereignty.
Figure 2.5: Summary of the Bill
of Rights
The first 10 amendments to the U.S. Constitution are
collectively known as the Bill of Rights.
Adapted from U.S. Const. amend. I–X.
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Summary and Resources
The Federalist Papers
The debates over what to include in the Constitution and how to
ratify it inspired a set of essays
known as The Federalist Papers. These essays were penned by
John Jay (1745–1829), Alexan-
der Hamilton, and James Madison, who were concerned about
New York’s reluctance to ratify
the Constitution. The Federalist Papers were published
anonymously as a series of editorials in
New York newspapers. (They used the pseudonym “Publius,”
which is derived from the Latin
“publicus,” meaning “of the people.”) The authors’ objective
was to persuade the people of New
York that the proposed constitu-
tion was in their best interest. If the
people were persuaded, they in turn
would petition their state conven-
tions to support ratification. These
85 editorials were collected and
came to be known as The Federalist
Papers, or simply The Federalist.
The Federalist Papers were not
typical opinion pieces; they were
lengthy and thoughtful essays
focusing on various aspects of the
proposed constitution, such as the
problems of the Articles of Con-
federation, the structure of each
branch of government, and the
characteristics of the new gov-
ernment and the proposed Bill
of Rights. It was clear that, being
published in newspapers, The Fed-
eralist Papers were intended for
an educated, literate audience. As
better educated, more affluent per-
sons were also those with political
rights, it was expected that readers
would pressure their state govern-
ment to support ratification.
Summary and Resources
Chapter Summary
The Framers came to Philadelphia in 1787 to form a more
perfect union, provide for the com-
mon defense, and promote the general welfare. They convened
the Constitutional Convention
because the Articles of Confederation proved to be unworkable.
Under the Articles, there was
no national unity; rather, the confederation was a loose
collection of sovereign states. The cen-
tral government had no real authority and had no power to
respond to a crisis. Because the
issue of a new constitution was controversial, the convention
had to be held in secret. Once it
was under way, several proposals were put forth, but the one
that was ultimately adopted was
the Connecticut Plan. It established separation of powers on the
basis of republican principles.
The National Gallery of Art
John Jay, along with Alexander Hamilton and James
Madison, anonymously published a series of editori-
als in New York papers in an effort to persuade New
Yorkers that it was in their best interest to ratify the
Constitution. The articles were later published as The
Federalist Papers.
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Summary and Resources
Although there is separation of powers among the legislative,
executive, and judicial branches
of government, as put forth in Articles I, II, and III, there are
also considerable shared func-
tions. Still, there was concern over the issue of state
sovereignty, which was expressed in the
debate between the Federalists and Anti-Federalists over the
inclusion of a bill of rights. As
ultimately adopted, the Bill of Rights was designed to preserve
state sovereignty and states’
rights and limit national authority.
Meanwhile, to calm the fears of some, three Framers argued for
ratification through The Fed-
eralist Papers. James Madison argued in Federalist No. 10 that
the federal system would dilute
the power of factions. The Federalist Papers argued the case for
ratifying and supporting the
proposed Constitution. See Timeline: Path to the Constitution
for major milestones in the cre-
ation of the U.S. Constitution.
Key Ideas to Remember
• The U.S. Constitution is modeled on earlier forms of
governments that existed in the
colonies prior to the American Revolution.
• The Framers of the Constitution considered themselves to be
good English subjects
but found it necessary to separate from the British Crown
because it imposed its
authority on, and restricted the liberties of, the colonies.
• The first American constitution was the Articles of
Confederation, but its lack of
centralized power and authority proved to be a major weakness.
• While some delegates to the Constitutional Convention sought
to create a wholly
new government from what existed under the Articles of
Confederation, others
sought to maintain states’ rights. The various proposals before
the convention repre-
sented these divisions.
• The plan that was adopted was the Connecticut Plan. It was
also known as the Great
Compromise because it allowed for proportional representation
in the House of
Representatives, which is what the large states wanted, and two
senators from each
state, which is what small states wanted.
• The U.S. Constitution is built on the central idea that if power
is divided among three
branches of government, and each branch has separate
functions, no one branch will
have sufficient power to encroach upon the rights and liberties
of individuals.
• The debate between the Federalists and the Anti-Federalists
over the inclusion of a
national bill of rights was an extension of the debate between
advocates of central
authority and advocates of states’ rights.
• When the Bill of Rights was ratified, it applied only to the
national government and
not the states, which meant that state sovereignty would be
protected.
Questions to Consider
1. What is the significance of separation of powers?
2. What is unique about the U.S. Constitution?
3. What are the pros and cons of the New Jersey and the
Virginia Plans?
4. In what ways is the U.S. Constitution grounded in historical
tradition?
5. As an individual, what rights does the Constitution give you
if you are a U.S. citizen?
6. Given the nature of checks and balances, was the government
shutdown of 2013
unavoidable?
fin82797_02_c02_023-052.indd 48 3/24/16 1:39 PM
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Summary and Resources
Timeline: Path to the Constitution
Photo credits (top to bottom):
radlovskyaroslav/iStock/Thinkstock, Brand X
Pictures/Stockbyte/Thinkstock,
peterspiro/iStock/Thinkstock, Photodisc/Photodisc/Thinkstock,
amanaimagesRF/Thinkstock.
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Summary and Resources
Key Terms
Annapolis Convention A gathering that
preceded the Constitutional Convention,
where delegates began to discuss ways to
improve the Articles of Confederation.
Anti-Federalists Those who opposed the
ratification of the U.S. Constitution, in part
because it did not include a bill of rights.
appropriating The act of the legisla-
ture designating money for a specific
purpose, such as on a social program or
infrastructure.
Articles of Confederation The first U.S.
constitution; a document that loosely bound
13 independent sovereign states together.
Bill of Rights The first 10 amendments to
the Constitution.
central government A government in
which authority and power are concentrated
in a single entity.
Connecticut Plan A compromise between
the large and small states over how the leg-
islative branch would be apportioned; also
known as the Great Compromise.
Constitutional Convention The meeting in
Philadelphia where delegates met in secret
to write a new constitution.
Continental Congress Legislature repre-
senting the U.S. colonies.
Electoral College Persons selected at the
state level who select the president.
expressed powers The duties of Congress
as stipulated in Article I, Section 8 of the
Constitution; among them are the ability to
collect taxes, borrow money, regulate com-
merce, coin money, establish post offices and
post roads, and declare war.
federal The division of power and author-
ity between units of government, such as the
states and the national government.
Federalists Those who supported the ratifi-
cation of the U.S. Constitution even though it
did not include a bill of rights.
Great Compromise See Connecticut Plan.
gridlock In U.S. politics, a situation of
extensive disagreement within one house of
Congress, between Congress and the presi-
dent, or between both houses of Congress
that makes it difficult to pass laws.
impeachment An accusation of wrongdo-
ing against the president or other public offi-
cial that triggers a trial; conviction results in
automatic removal from office.
implied power Power given to Congress
that is “necessary and proper” for carrying
out its powers listed in Article I, Section 8.
interstate commerce Conducting business
and moving goods across state lines.
Mayflower Compact An agreement among
the Pilgrims on board the Mayflower to have
self-government in the settlement once
they reached the colonies; one of the earlier
bases for the U.S. Constitution.
New Jersey Plan A proposal for a federal
government with carefully listed powers,
arising from the New Jersey delegation at
the Constitutional Convention.
Virginia Plan A proposal for a supreme
national government made by the Virginia
delegates to the Constitutional Convention.
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Summary and Resources
Further Reading
Bailyn, B. (1970). The origins of American politics. New York,
NY: Vintage Books.
Barker, E. (Ed.). (1946). The politics of Aristotle. Oxford, UK
and New York, NY: Oxford University Press.
Beard, C. A. (1913). An economic interpretation of the
Constitution of the United States. New York, NY: Macmillan.
Beeman, R. (2009). Plain honest men: The making of the
American Constitution. New York, NY: Random House.
Farrand, M. (1911). The records of the Federal Convention of
1787 (Vols. 1–4). New Haven, CT: Yale University
Press.
Fisher, L. (1997). Constitutional conflicts between Congress
and the president (4th ed.). Lawrence, KS: University
Press of Kansas.
Hamilton, A., Madison, J., & Jay, J. (1982). The Federalist
papers. New York, NY: Bantam Classic Edition. (Original
work published 1787–1788)
Nedelsky, J. (1990). Private property and the limits of American
constitutionalism: The Madisonian framework and
its legacy. Chicago, IL and London, UK: University of Chicago
Press.
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1
ACCT 2005 Financial Accounting 2
SP2 2017
FEEDBACK ON DRAFTS OF STATEMENT OF PROFIT OR
LOSS AND OTHER
COMPREHENSIVE INCOME
I have now reviewed the draft submissions and offer the
following comments/advice. These
comments primarily focus on the format (not actual calculations
or the treatment of specific
events/transactions) and these comments may, or may not apply,
to individual student’s drafts. I have
not provided comments regarding every error that occurred –
only those that were noted for a
number of students.
I also realise that this is a ‘draft’ and not the final
product/assignment submission, so it may be that
you already intend to address some points that I raise.
First, congratulations are due to many of you. It was clear that
the majority of students who
submitted a draft had followed the instructions and read the
FAQ’s. I know that this was optional but
it was disappointing that over 40% of students did not submit a
draft. To those students who did
submit a draft, this means you are off to a good start!
For those who have not yet done so, PLEASE read the
instructions and FAQs carefully, and take time
to review the assignment overview video before you complete
this assignment if you are to avoid a
number of common errors.
For a number of drafts this statement was correctly formatted.
However there were many which
were not. I have provided below comments on some common
problems and advice. These comments
have been numbered to allow for easy reference when
completing the “Statement on Use of Draft
Feedback” required with your final submission
REMEMBER: EVEN IF YOU DID NOT SUBMIT THIS DRAFT
OPTION YOU WILL STILL NEED TO INCLUDE THIS
STATEMENT ON USE OF DRAFT FEEDBACK IN YOUR
FINAL ASSIGNMENT ON THE ASSIGNMENT COVER
SHEET.
IF YOU DO NOT, 5 MARKS WILL BE DEDUCTED FROM
YOUR FINAL ASSIGNMENT MARK.
1. It was disappointing that a number of student’s statements
were still formatted as in first year
courses and did not comply with the assignment instructions
(e.g. some students presented a
fully classified statement with the analysis of expenses included
in this (i.e. on the front of the
statement) – the assignment required only those items required
to be included in this statement.
The only time additional lines should be used is where it is
absolutely necessary – e.g. expenses,
excluding finance costs or other income).
2. The assignment instructions explicitly directed that only the
required (minimum) line items be
included in (i.e. on the front of) this statement. This means:
2.1. If there is a choice to disclose the information in the
statements or the notes, the disclosures
need to be in the notes. For example, the analysis of expense
must be in the notes (not in
the statement). Students should NOT follow the examples in
AASB 101 para 102 or 103 for
this statement (these examples would apply where the analysis
is included in – on the front
2
of - the statement).
2.2. Individual expenses (such as COGS and other amounts such
as depreciation expense) should
NOT be in (on the front of) the statement.
2.3. Individual material items of expense (or revenue or other
income) are disclosed in the
notes; not separately on the front of the statement.
2.4. A number of students split expenses into ‘expenses’ and
‘other expenses’ and/or ’loss’.
This is not correct. Unless the expense is a finance cost or tax
expense, then if an item
is an expense you need to include in the line item for “expenses
excluding finance
costs”.
Please refer to the assignment instructions. There are also
examples of statements with
only the required line items on the front in your topic review
questions/activities.
It was apparent that some students had simply ‘copied’ the
items/format from model or
actual reports. Such statements will not follow the assignment
instructions and will
therefore be heavily penalised. Further, remember we are
assessing your ability to
format statements and notes (not your ability to ‘copy’ or use a
template).
3. You need a comparative column for this statement (some
students had comparative columns
with numbers. While you can ‘make up’ numbers, you can
simply use ‘x’ in your comparative
column in place of numbers).
4. Some students had a profit and loss statement – not a
statement of profit or loss and
other comprehensive income.
5. The instructions are clear that there are no items of other
comprehensive income (see
below):
Please note: In this case study there are no items of other
comprehensive income. In (on the front of)
this statement you will need to include a line item for items of
other comprehensive income however
this will have a zero balance (please refer to the answer to topic
review questions of topic 2 for an
example).
5.1. Despite this a number of drafts had included items as ‘other
comprehensive income’
items. This is clearly incorrect. If you did this you need to re-
assess where these items
should be included.
6. It is apparent that a number of students are still confused
about what to include as ‘revenues’
and what to include as ‘other income’ (i.e. income items that are
not revenue).
6.1. Look at the advice in the instructions about how to
differentiate between revenues and
other income (e.g. look at para 74 of the Framework). Revenues
are not limited to sales.
6.2. In this statement, a number of students split income into
‘revenue’ and ‘other revenue’.
This is not correct. If an item is revenue then include it in
revenues. If an item is not revenue
then you will need to include as ‘other income’. Further some
students split income into
‘revenue’ and ‘other income’ and ‘gain’; again for this
assignment you can only have a split
between ‘revenue’ and ‘other income’ (gains would be a type of
other income and
therefore would be included with any other items of other
income).
3
6.3. Some students included a line item ‘Revenues’ in their
statement and then included in
brackets after this the components. In your actual assignment
you cannot include this extra
information on the front of the statement; only in the notes.
6.4. Some students incorrectly included sales revenue net (i.e.
after deduction of cost of sales).
6.5. Sales returns are not an expense.
6.6. There were also some students confused about how to
account for the sale of non-
current assets. In these drafts, the most common mistake was
the treatment of the sale
of non-current assets; although a number of students did
correctly calculate and present
the impact from the sale of any non-current assets. Please refer
to AASB 101 para 34
(and to the examples in the course materials).
7. Take care with finance costs. While some students had the
correct finance costs amount, there
were many who did not. Please refer to the FAQ document
about what is, and is not, included in
these. Also think about what is ‘included’ as an expense; e.g. if
there is interest accrued and/or
paid during a period then this needs to be recognised, but the
principal amount is already
included in the statement of financial position and consider if
any balance date adjustment is
required. Further, as a FAQ states, finance costs would not
include the range of items that you
may have considered or classified as ‘financial expenses’ in
internal profit and loss statements in
earlier courses.
8. Take care with treatment of items. Think about:
8.1. Can I include something as an extraordinary item?
8.2. We do not consider discontinued operations, revaluations or
non-controlling interests in
this course.
8.3. Should dividends be included in this statement?
8.4. Cleary provisions are confusing some students. Think
about the timing (and also relate
this to definitions of expenses, income etc in framework). Think
about what entries
were processed when the original provision/expense was
recognized. Think about
what entry the company has processed when the case was
settled/finalised?
Remember all items of income/expense must be recognised in
the period they occur.
8.5. Read the information carefully. It was clear that a few
students had not (and this perhaps
is understandable given that this draft may have been done in a
hurry). For example, the
expenses in (a) are already included in the amount of
‘Expenses’ in the trial balance. Yet
some students added all of the items listed in (a) to the amount
of ‘Expenses’ in their
statement.
9. Where line items do not apply to the company (such as share
of profit/loss in associate, or
discontinued operations) these should not be included in the
statement. This would also apply
to other statements such as the statement of financial position.
For example, AASB 101 para
54(f) requires biological assets to be shown in (on the front) of
the statement. However in this
case study the company has no such assets so this line item
would not be included.
10. There is no need to provide standard and paragraph
references for the statements (this is
only required for the notes); although we will not penalise
students who include these for
the statements.
11. In terms of ‘general’ formatting issues note the following
(although I recognise that some of
4
these you may intend to ‘fix’ prior to the final assignment
submitted):
11.1. You will need an appropriate company name in the header
(title) of the statement, as
well as indicating an appropriate date or period/year ending
(remember from first year
that this will differ between statements).
11.2. Do not confuse the date of authorisation of the financial
report with the date the
reporting period ends.
11.3. Be consistent with rounding.
11.4. Take care with spelling (I didn’t realise that
‘comprehensive’ could be misspelt so many
11.5. Take care with alignment/justification and fonts – again
be consistent.
11.6. Printing: I did not print these out but in a few cases it was
apparent that the
statement would not have printed properly on the page. Please
ensure that this does
not happen with the final assignment as the marker marks what
is printed! Either
print out before you submit or use the print preview function to
check this.
Academic Integrity issues:
12. As you are no doubt aware from viewing your own Turnitin
report, given the nature of this draft
(and therefore high similarities) it is difficult to determine if
there have been any academic
integrity issues in this draft from the Turnitin reports (the
Turnitin reports will identify this in
the final assignments as these are larger and thus the matches
more meaningful).
13. As this draft was restricted to one statement few referencing
issues were able to be identified.
However remember that the assignment instructions are explicit
that you need to format these
statements and the notes yourself. It appeared that some
students had included (particularly
at the bottom of the statement) parts taken/copied from other
sources, such as:
“This statement should be read in conjunction with the
accompanying notes to the financial
statements”
Such inclusions are acceptable but you must reference them–
some students had
referenced and some had not.
14. Other inclusions (such as details re: earnings per share) are
NOT required in this assignment and
such inclusions will be penalised. As well as this, as it would
be apparent that such inclusions must
have been copied from other sources, if they are not adequately
referenced they would also
constitute plagiarism, and would thus be referred to the
academic integrity officer.
15. A few students had scanned or included their draft in a
picture format in their document or copied
an object into the document in a way that it is not electronically
readable/searchable. This is NOT
acceptable for the final assignment. As the instructions state:
The electronic submission for this assignment must be in the
form of either a PDF or Word document and
must be in a readable format so that it can be processed via
Turnitin. Until a readable document is
submitted late penalties will be applied. This means that you
cannot ‘scan’ any significant parts or all of
this assignment or insert statements, notes or reports as pictures
or the like (if necessary, you can insert
graphics, for example on the title page, as pictures and can scan
the appendix only).
5
16. It also appears that some repeating students may have used
their previous assignment as a basis.
However you should note that you may not be able to use your
previous assignment – see
information below:
Can you use parts of your previous assignment if repeating this
course?
16.1. Only if you completed this previous assignment on an
individual basis
16.2. If completed in a group then this includes the work of
other students
16.3. Under university policy it is misconduct to submit an
assignment that includes the work
of other students (i.e. students outside your current group
submitting the assignment).
Please note that Turnitin will match to previous assignments.
17. Remember also to review the information on academic
integrity in the assignment instruction
booklet. You should not access other student’s assignments
(either from previous study periods
or this study period) nor allow other students to access your
own work. As the instruction booklet
states:
You should note that in previous study periods a number of
students received ZERO for this
assignment as they had used other students work (from the same
or previous study periods) as the
basis for their own assignment. If you use another students
assignment (e.g. from this or a previous
study period) as a basis or ‘template’ for some/all and change
for this case study you will be
referred to the Academic Integrity officer and should expect to
receive ZERO as a minimum penalty.
I hope this document provides you with some useful information
to consider in finalising your
assignments. I would STRONGLY SUGGEST that if you have
not already done so, that you read the
assignment instructions and FAQ’s carefully, and also view the
assignment overview video.
Also, be aware that mistakes that have been explicitly noted in
this document (for example,
including Cost of sales on the front of the statement) will attract
significant penalties if these
mistakes occur in your final assignment.
You should be able to access your marks for this draft from
Learnonline.
A very few students will not receive these bonus marks as they
did not comply with the instructions
for this draft. In particular, students will not receive these
bonus marks if:
draft as required.
statement or a statement with no
numbers so not related to this case study).
notes or other information or other
statements).
Please do not be disheartened if you did not receive these marks
due to not complying with the
instructions. Treat this as an opportunity to learn. If you fail to
follow the specific instructions for the
assignment itself, you will lose many more marks. A number of
students who did not submit the draft
will no doubt achieve a high distinction grade in this
assignment.
If you have any questions about these you need to contact me
via the course email ACCT2005
Enquiries [email protected]
Please remember that specific feedback will not be provided on
individual drafts.
mailto:[email protected]
6
IMPORTANT: Just because you received 5/5 for this draft does
not mean that your draft (or numbers
therein) is correct. As stated above "These comments primarily
focus on the format (not actual
calculations or the treatment of specific events/transactions)".
There was a broad cross-section of
statements - both correct and incorrect. Remember this was a
draft and so was not expected to be
completely correct. All that the 5 marks indicate is that you
submitted a draft relating to this case
study in accordance with the instructions for this draft, not that
your draft was in any way correct.
All the best with the completion of your assignments.
Sue McGowan
Course coordinator
FA2 FAQ Annual Report Assignment Page 1 of 12
Frequently Asked Questions & Answers on annual report
assignment
This document includes some common questions (and answers)
that students often
ask about this assignment. A general comment is that many
questions from students
(and many poor results in this type of assignment) are due to:
• Not reading the assignment information and instructions. You
need to read these
carefully and a number of times – especially before you begin
and before your final
submission. The assignment has particular requirements and
these must be
followed!
• Not understanding basic accounting procedures/entries from
initial accounting
courses. This is prerequisite knowledge so will not be ‘re-
taught’ in this course.
It is also important that you have worked through all of the
materials for the first 5
topics (up to and including Liabilities) in this course BEFORE
you finish this
assignment. There are a number of topic review
questions/activities that provide
examples of the statements with only required line items in (on
the front) the
statement and recordings include examples of many of notes.
QUESTION
Can I include notes required by accounting standards other than
those studied in first
5 topics.
ANSWER
The answer is no. Whilst is it pleasing to see students
considering more standards
you are required to only consider those standards in those topics
identified in the
assignment instructions and should not consider other standards
(even those in later
topics) - so you should not add in notes relating to for example,
AASB 112.
Having said this you should note that, for example, AASB 101
has some
requirements that do not specify exactly what items need to be
disclosed, however
these do indicate that additional information that is required -
for example look at
AASB 101 para 77 which requires further sub classifications;
AASB 101 para 97
which requires disclosure of material items of income/expense...
so although we may
not consider other standards you need to consider whether the
standards that we are
applying (such as AASB 101) would require disclosure of (for
example) sub-
classifications of particular items.
I have restricted the standards to consider to ensure that the
assignment is not too
much work for students and also to ensure that I am fair to all
students. To be fair in
marking this assignment I need to ensure that all students have
considered the same
standards. Also a key purpose is to determine if students can
read and apply the
requirements of particular standards. By restricting the
standards considered this
allows me to better assess this.
If you are looking at real or ‘model’ financial reports to assist
you in this assignment,
you should be aware that these will consider all of the
accounting standards – many
of which we do not consider at all in this course. I would
suggest that to determine
the notes required in this assignment you ‘work though’ the
standards that are
specified for this assignment to see what notes are required
(given the information in
this assignment) and then, if you wish, refer to actual or model
reports for an
example of how to prepare notes (although there are alternative
formats for notes as
accounting standards specify what needs to be disclosed but not
necessarily ‘how’ in
terms of format). You should not use the real or ‘model’
financial reports to determine
what to include in (on the front of) statements or which notes
are required for this
assignment as these (as noted above) will consider other
standards and have made
FA2 FAQ Annual Report Assignment Page 2 of 12
choices about where to disclose information that do not follow
the instructions for this
assignment. Further these may not consider the version of
standards we are
applying. Remember- for each note that you include you need to
identify the
particular accounting standard (and the paragraph number) to
justify the inclusion of
that note.
The standards you need to apply (and reference) in this
assignment are AASB 101,
AASB 108, AASB 110, AASB 1054 and AASB 137.
QUESTION
I am confused about what to adjust for – I am not sure what
items I need to adjust in
the trial balance.
ANSWER
It can be confusing. You need to read the information carefully.
Remember in additional information it states:
Note: Unless otherwise indicated the events and transactions
outlined below have
already been accounted for in the balances above.
So unless it is indicated that NOT adjusted these
events/transactions would have
already been accounted for (and reflected in balances in the trial
balance). However
you may need to 'work' back to calculate the balances of some
items (such as share
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2 The U.S. ConstitutionRoel SmartiStockThinkstockLea.docx

  • 1. 2 The U.S. Constitution Roel Smart/iStock/Thinkstock Learning Objectives By the end of this chapter, you should be able to • Describe early forms of American government, and explain how they formed the basis for the U.S. Constitution. • Explain the weaknesses of the Articles of Confederation, and describe how these weaknesses helped lead to the Constitutional Convention. • Describe the Constitutional Convention, and analyze the various proposals presented. • Analyze separation of powers and checks and balances. • Describe the debate between Federalists and Anti-Federalists over the inclusion of a bill of rights in the U.S. Constitution. fin82797_02_c02_023-052.indd 23 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
  • 2. On October 1, 2013, the U.S. government shut down. This meant that “non-essential” govern- ment services—parks and museums, certain regulatory agencies, and other services—were suspended while federal employees who performed non- essential services were instructed not to work. These services did not resume until October 17, 2013. What normally causes a government shutdown is a failure between the president and Con- gress to agree on a budget. While the Constitution does not require a budget, the government cannot function without one. The budget is a legislative process like any other—majorities within each house of Congress must pass the same budget while the president must sign it for it to take effect. If no agreement is made, then the government cannot operate and is effectively shut down, normally in early October because Congress’s budget designations for a given fiscal year expire on September 30. Because Congress has the “power of the purse,” many believe that the budget originates in Congress. However, for many years now the practice has been that the president collects bud- get estimates and requests from all the agencies and departments in the executive branch, puts them together, and then submits a budget proposal to Congress. Following much debate and many modifications, Congress then passes a budget, appropriating, or designating, what funds can be spent for a specific purpose. The budget then goes back to the president for his or her signature. In essence, when the president presents the
  • 3. proposed budget to Congress, the president signals to Congress that if the proposed budget is passed as presented it will not be vetoed and government will continue to function without interruption. In 2013, the U.S. House of Representatives, dominated by Republicans, disagreed with the U.S. Senate, composed of a majority of Democrats, on an appropriations continuing resolution that would have kept the government running. House Republicans wanted to delay or defund the Patient Protection and Affordable Care Act (PPACA) (discussed in Chapter 1) in exchange for supporting a budget resolution. The Democratic-led Senate refused and passed several resolutions that would maintain current funding levels and spending cuts. Even if the Senate had agreed to House demands, President Barack Obama had threatened to veto any budget that delayed the PPACA. The Constitution requires that the president must either accept the budget as it is or reject the budget because the president may not veto any part of the budget. The president may not accept some parts of the budget and reject others. These fundamental disagreements caused the government to shut down until a budget resolution was passed. Certainly, both sides pointed fingers blaming the other for the government shutdown— Republicans blamed Democrats, the House blamed the Senate, the Senate blamed the House, and the House blamed the president. In some respects, this was for good reason: The U.S. Con- stitution provides that both houses of Congress and the
  • 4. president cannot operate without the cooperation of the others. The Framers intended Congress to have the “power of the purse,” or control of the nation’s finances. The president can propose a budget, but he or she cannot spend public monies unless Congress has appropriated them. However, the appropriation of money cannot be final until the president signs it into law. If no agreement is made, then the government cannot operate and is effectively shut down. Why did the Framers not make it easier for the government to maintain operations? Because they wanted to incorporate a system of checks and balances, as well as a system of separa- tion of powers. If each branch could act on its own without the agreement of the others, each might have sufficient power to limit individual liberties. By dividing power, it would be much fin82797_02_c02_023-052.indd 24 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.1 Early American Government more difficult for government to act on much of anything, thus preserving individual liber- ties. Checks and balances, as we will see, are the cornerstone of the American constitutional system. As the 2013 shutdown illustrates, there are two ways to look at
  • 5. checks and balances. One is to say that the system is a prescription for endless gridlock—in essence, a political stalemate— and ineffective government. Another is to view it as a prescription for government by consen- sus, because everybody needs to work together to get things done. In this chapter, we look at the U.S. Constitution, the process by which it was formed, and the rights and restrictions that it provides to the states and to the American people. As one of the nation’s foundational documents, the Constitution establishes the framework for the federal government. It also functions as a contract between the national government and the states that created it. 2.1 Early American Government The U.S. Constitution is actually modeled on the earlier governments found in the colonies. Specifically, it has roots in the early American settlements of the 1600s. American govern- ment as it is known today began as something small and private and evolved into a larger self-government. The First English Settlements The first English settlements in colo- nial America began as private compa- nies composed of individuals seeking economic gain. The first successful English settlement began in James- town, Virginia, in 1607, after King
  • 6. James I granted a charter to the Virginia Company to establish a settlement in the Chesapeake region. The Virginia Company in turn encouraged people to settle the new colony by offering to pay their travel expenses. In exchange, the settlers were expected to send the company a share of their profits. (The settlers hoped to find gold, but in the colony’s early years they primarily col- lected lumber, tar, pitch, and iron for export back to England.) By granting the charter, the king gave the company authority over the colony, and by sending profit shares back to the company, the settlers effectively paid taxes. Because the company was based in England, the settlers had no more voice in their government than if the king himself retained absolute rule. © Bettmann/Corbis Colonists arrive in Jamestown, Virginia. King James I granted a charter to the Virginia Company, which offered to pay potential settlers’ traveling expenses to the New World. fin82797_02_c02_023-052.indd 25 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.1 Early American Government
  • 7. In the years following the initial Jamestown settlement, more settlers came to the New World, and by 1619 there were 11 settlements in Virginia. The Virginia Company, however, wanted the colony to grow even faster. To induce more people to come, the company gave property- owning male settlers the right to vote and elect their own assembly, known as the House of Burgesses. This was the beginning of American self- government. Colonial Assemblies A striking feature of American colonial development was the lack of control by the British government. All but one of the colonies had originally been companies of shareholders or proprietorships whose authority was based in charters granted by the Crown. While the company that received the charter was able to pick a governor for the colony, the principal governing institutions were actually the assemblies elected by the colonists. The assemblies wielded considerable power, including the right to raise troops, to levy taxes, and to pass laws. The one colony that did not develop along these lines was Georgia. Georgia was the last colony founded. Its purpose was to serve as a place for debtors recently released from prison to go to get a fresh start. Georgia was also established to serve as a buffer between Florida and South Carolina to guard against Spanish expansion from Florida. The name of this last colony was selected to honor King George II, who granted the charter for establishing the colony.
  • 8. The colonies never thought of them- selves as subservient to the Crown. Rather, they viewed themselves as commonwealths, with the assemblies being the locus of rightful power and authority. In Plymouth, Massachu- setts, for instance, the Pilgrims estab- lished a system of self-government based on the Mayflower Compact, an agreement they made on their way to America in 1620. Under the Mayflower Compact, the settlers agreed to abide by the decisions of the majority and conduct their affairs without outside interference, especially from the Brit- ish. The physical distance between America and England left the colonial assemblies with a great deal of autonomy. Injustice, Rebellion, and the Continental Congress Beginning around 1700, the colonies found themselves absorbed into the larger conflicts plaguing Europe. From 1689 through 1763, a series of wars was fought on the European con- tinent and had much to do with French expansionist ambitions. But a component of those wars was fought in the colonies by British troops. Conflicts extended into the colonies as part of the larger fight between colonial factions for more power and spheres of control. SuperStock/SuperStock The Mayflower Compact was a governing document
  • 9. written by the Pilgrims as they traveled to America. fin82797_02_c02_023-052.indd 26 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.1 Early American Government During the late 1700s, the British Crown attempted to impose its authority and restrict the liberties of the colonists mostly by imposing new taxes to help pay for the wars. But some of the restrictions were limitations on colonial trade as the British government sought to protect industry at home. The British Parliament, for instance, passed the Wool Act in 1699, which not only increased taxes but also increased control over colonial trade and production. American colonies were prohibited from exporting wool to markets outside the colonies. The Crown also limited imports of wools and linens from other areas in the British Empire. Most colonists saw themselves as good English subjects who were entitled to the same rights as their countrymen anywhere else in the world. In England itself, the English people (but not the colonists) were represented in the House of Commons, part of the British Parliament. In the same vein, the colonists saw the colonial assemblies as their own representative bodies. It was one thing for the assemblies to pass laws affecting them. But it was quite another for the
  • 10. British Parliament to impose laws on people who were not represented in that body. The rallying cry for the American Revolution was “No taxation without representation,” and one of the first taxes that would pave the way for war was the Sugar Act of 1764, which drew colonists’ anger more because of its economic impact than because of its political signifi- cance. The tax hit the colonies during a depression, which many attributed to the tax itself. The Stamp Act of 1765 represented an attempt by the British government to force the colo- nies to shoulder some of the expense of providing defense during the French and Indian War. Colonists had to pay a tax on all printed materials, including books, newspapers, magazines, and legal documents, all of which were required to bear an embossed stamp. Following the Stamp Act, Parliament passed the Townshend Acts of 1767, which were even harsher. Named after Charles Townshend, chancellor of the British Exchequer (the British Treasury), these acts imposed new taxes on glass, lead, paper, paint, and tea. The Townshend Acts were further reinforcement of Britain’s absolute power to enact any laws to govern the colonies. The colonists protested these and other taxes with boycotts and other forms of pro- test, including violence. Many violent protests centered on Boston, and they prompted the British to send in troops to pacify the city. Ultimately, most of these taxes were repealed, except for the tax
  • 11. on tea. Still, the protests con- tinued, culminating in the Boston Tea Party of 1773. Because officials refused to return three shiploads of tea to Britain, a group of colonists boarded English ships in Boston and dumped hundreds of chests of tea into Boston Harbor to protest the tax. This became known as the Boston Tea Party. In response to the Boston Tea Party, Parliament passed a series of laws that colonists called the Intolerable Acts. The purposes of these acts included closing the port of Boston until all of the damage caused by the Tea Party was repaid, putting Massachusetts under military rule with more troops arriving in that colony, making it illegal for royal officials to be brought to trial in the colonies (and instead holding their trials in England), ending colonial government in Massachusetts and allowing the royal governor to appoint the colonial legislature, and giv- ing land claimed by Massachusetts, Connecticut, and Virginia to Canada. Meanwhile, by 1774, the colonies had established the first continental legislative body, or Continental Congress. The British responded by sending even more troops. The Congress fin82797_02_c02_023-052.indd 27 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
  • 12. Section 2.2 Why a New Constitution? met briefly in Philadelphia in 1774 and consisted of 56 delegates from all 13 colonies. Most of the delegates were not ready to separate from the British; rather, they wanted both the king and Parliament to treat the colonies more fairly. Early the following year, however, skirmishes between armed colonists and British troops turned deadly. By the time the second Continen- tal Congress met in May of 1775, the American Revolutionary War had begun. Although there were still those who wanted to work something out with Britain, there was now a growing movement for independence. Independence and Confederation The colonies declared their independence on July 4, 1776, with the signing of the Declaration of Independence. The Declaration was nothing more than a statement announcing separa- tion—it did not form a government. Actual independence came only through military vic- tory, which required, at a minimum, that the newly independent states remain united. The Continental Congress raised an army and placed it under the command of George Washing- ton (1732–1799). The following year, the Congress drafted the Articles of Confederation to unite the states. The Articles were the first U.S. constitution. Born from a revolutionary spirit suspicious of strong central government, in which authority would be concentrated in a single entity, the Articles of Confederation created a “firm league of friendship” (a phrase from
  • 13. Article III of the Articles) among the states. The Articles invested the greatest power in the individual states and left the new national government weak and powerless. The revolution was a rebellion against strong centralized power; therefore, it was inevitable that the colonists would not form a government with strong central authority. But the Articles proved inadequate to maintain unity, and, shortly after the War of Independence was over, the confederation began to unravel. 2.2 Why a New Constitution? The Articles had three fatal flaws. First and foremost, they failed to give the national govern- ment the power of the purse, meaning that they granted the government neither the power to levy taxes directly on the people nor the power to force the states to pay their share of expenses. The national government could not even tax to pay its war debts. Second, any amendments to the Articles required the unanimous approval of the state legislatures. And third, they did not provide for a chief executive to carry out essential tasks and deal with crises. The main problem with the Articles of Confederation was the absence of strong central authority. This meant that the United States would have no common defense if it were attacked. An individual state could easily be overrun by a foreign government. The absence of central authority was a problem for another reason as well. The
  • 14. new government could not regulate commerce, and that threatened the development of a national economy. Associated Press The Articles of Confederation, shown here, were adopted by the Continental Congress in 1777. However, wariness of central authority resulted in a weak, unworkable national government, and many agreed the Articles would need to be revised. fin82797_02_c02_023-052.indd 28 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.2 Why a New Constitution? The Constitutional Convention, where delegates would meet to revise the Arti- cles and eventually draft the U.S. Con- stitution, was actually preceded by the Annapolis Convention. A small group of delegates met at Annapolis, Maryland, in September 1786 to address another one of the failings of the Articles: the lack of authority to impose uniform commercial regulations among the states. This meet- ing had been called into session by the Continental Congress but was not really a proper convention. Only 12 delegates from five of the 13 states showed up,
  • 15. which meant that the delegates had no authority to do anything and their deci- sions would not represent the will of all of the states. Those who did show up had some strong views about what needed to be done. James Madison (1751–1836) and Edmund Randolph (1753–1813), both of Virginia, and Alexander Hamilton (1755–1804) of New York, all of whom would attend the Constitutional Conven- tion, were convinced that the new nation needed much stronger central authority. Hamilton wrote to the Continental Con- gress on behalf of Madison, Randolph, and himself, requesting that the states appoint commissioners to meet in Philadelphia to consider these matters. Those in Annapo- lis, especially Madison and Hamilton, wanted to overhaul the Articles and create a whole new government. Some of the Framers were also concerned that a fragmented confederation would make it more difficult, if not impossible, to create a national economy. Without a central authority reg- ulating interstate commerce, each state was free to establish its own tariffs. These applied equally to the other states, just as they did to other nations. A national economy would require uniform standards and a central authority empowered to enforce them. In the early 20th century, historian Charles Beard (1913) argued that the Constitution was
  • 16. more about serving the economic interests of the Framers than the lofty philosophical and ethical principles found in the Declaration of Independence. As far as Beard was concerned, the Framers sought to promote commerce and protect their property from radical state leg- islatures. It is certainly true that those who participated in the Constitutional Convention were wealthy men who were concerned about the absence of national regulatory authority on matters of commerce. met briefly in Philadelphia in 1774 and consisted of 56 delegates from all 13 colonies. Most of the delegates were not ready to separate from the British; rather, they wanted both the king and Parliament to treat the colonies more fairly. Early the following year, however, skirmishes between armed colonists and British troops turned deadly. By the time the second Continen- tal Congress met in May of 1775, the American Revolutionary War had begun. Although there were still those who wanted to work something out with Britain, there was now a growing movement for independence. Independence and Confederation The colonies declared their independence on July 4, 1776, with the signing of the Declaration of Independence. The Declaration was nothing more than a statement announcing separa- tion—it did not form a government. Actual independence came only through military vic- tory, which required, at a minimum, that the newly independent states remain united. The
  • 17. Continental Congress raised an army and placed it under the command of George Washing- ton (1732–1799). The following year, the Congress drafted the Articles of Confederation to unite the states. The Articles were the first U.S. constitution. Born from a revolutionary spirit suspicious of strong central government, in which authority would be concentrated in a single entity, the Articles of Confederation created a “firm league of friendship” (a phrase from Article III of the Articles) among the states. The Articles invested the greatest power in the individual states and left the new national government weak and powerless. The revolution was a rebellion against strong centralized power; therefore, it was inevitable that the colonists would not form a government with strong central authority. But the Articles proved inadequate to maintain unity, and, shortly after the War of Independence was over, the confederation began to unravel. 2.2 Why a New Constitution? The Articles had three fatal flaws. First and foremost, they failed to give the national govern- ment the power of the purse, meaning that they granted the government neither the power to levy taxes directly on the people nor the power to force the states to pay their share of expenses. The national government could not even tax to pay its war debts. Second, any amendments to the Articles required the unanimous approval of the state legislatures. And third, they did not provide for a chief executive to carry out
  • 18. essential tasks and deal with crises. The main problem with the Articles of Confederation was the absence of strong central authority. This meant that the United States would have no common defense if it were attacked. An individual state could easily be overrun by a foreign government. The absence of central authority was a problem for another reason as well. The new government could not regulate commerce, and that threatened the development of a national economy. Associated Press The Articles of Confederation, shown here, were adopted by the Continental Congress in 1777. However, wariness of central authority resulted in a weak, unworkable national government, and many agreed the Articles would need to be revised. fin82797_02_c02_023-052.indd 29 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.3 The Constitutional Convention Others, such as Alexander Hamilton, stressed the public interest of what they called a “com- mercial republic,” the view that the nation’s public interest was in part defined by free trade
  • 19. and commercial activity, and that this interest could be served by individuals freely pursuing their economic self-interests unfettered by government. By crafting a document that estab- lished the authority of Congress to regulate interstate commerce while establishing that laws coming from Congress would be the supreme laws of the land, the Framers could create a national government with real power. These views represented Hamilton’s views about gov- ernment regulation of the economy. 2.3 The Constitutional Convention The Constitutional Convention convened in Philadelphia during the summer of 1787 at the direction of the Continental Congress, although the deliberations were kept secret. Dele- gates were charged only with revising the Articles, but it was out of this convention that the U.S. Constitution would emerge. Who Came to the Convention? Many of those attending the Convention had already achieved great prominence. Several were older and wealthy, while others were relatively young. Because the convention debates were held in secret, only a few people recorded the proceedings. One of these persons was James Madison, who is commonly regarded as the father of the U.S. Constitution. Madison devel- oped, among other provisions, the constitutional system of checks and balances. He, along with Hamilton, pushed for strong national authority.
  • 20. Most of the other convention delegates came with a strong sense of duty to represent their respec- tive states. Although there was general agreement that the Articles were unworkable, disagreements arose over how to replace them. Madison, for instance, wanted to overturn equal representation of the states. Others argued the need for a strong executive. Delegates from slave states wanted their slaves to be counted in the population so that their states would enjoy greater representation in the as-yet-undeveloped national legislature. In addition to a strong central government, del- egates to the Constitutional Convention wanted a system that employed checks and balances. The delegates did not trust the masses to govern them- selves yet believed that a legitimate government could exist only if it rested on popular sovereignty. The delegates wanted a government that would be close to the people while at the same time free to make decisions on behalf of the nation without The White House Historical Association Like Hamilton, James Madison believed in a strong central government. He helped formulate the Virginia Plan. fin82797_02_c02_023-052.indd 30 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.3 The Constitutional Convention
  • 21. securing public approval for those decisions. To the extent that they sought to establish a democracy, it was to be a representative democracy consistent with republican principles. They outlined these goals in large part due to their experiences with the British government. At the same time, the delegates wanted to create a durable system of government that would withstand the test of time. They could achieve this goal if they created a general and broad document that avoided specifics. In this way, the Constitution could be applied to future cir- cumstances. The Preamble of the Constitution declares the basic goals of government, while the seven articles of the Constitution that follow the Preamble establish general rules by which government institutions would operate, but the Framers purposely avoided establish- ing procedures for governing. Initial Constitutional Proposals Most of the Framers wanted to create a republican government, but different factions still had different ideas of what they wanted to accomplish, as well as how everyone’s interests should be represented. For example, the delegates confronted the contentious issue of how both the large and small population states would be represented in the legislature. Under the Articles, each state was represented in the legislature by one vote, which put all states, regardless of population, on equal footing. Should the new constitution continue providing equal represen-
  • 22. tation for each state regardless of size or population, or would representation be proportion- ate to population, with larger states having more votes than less populous ones? Democratic principles required that larger states have greater representation. But that was a more difficult issue than it appeared. Many large states, such as Virginia, were also slave states. Would the slave population in those states contribute to the population numbers that determined their representation? Slaves were not considered citizens, and to have them included would, at least in the minds of the small states, give the large states an unfair advan- tage. There was also the issue of state sovereignty, or self- determination. For each state to have one vote, as they did under the Articles of Confederation, was for each state to be equal in its sovereignty. This meant that each state had equal power to participate in national deci- sions. Would state sovereignty be similarly respected in the new national government? Small states believed that if they lost their equality in the legislature that their residents would also lose their political voice, or sovereignty, in the national government. If the large states gained power in the new government (and if this new power was enhanced by counting slaves among the state populations), the small states would be overshadowed by the large states and resi- dents of the small states would lose their sovereignty in the proposed system. Related to this question was the issue of the chief executive and how powerful that executive
  • 23. would be. A powerful national chief executive could also threaten state sovereignty because the chief executive would govern the nation despite state-level differences. For some, the idea of a chief executive evoked images of a king with centralized power and authority who could call on national troops to force his will on the states, something not provided for in the Arti- cles. But the absence of the legislature during a time of crisis meant that no one could act. In the previous chapter, we defined politics as who gets what, when, and how, and the Con- stitution would determine exactly that. As lofty as the principles and values of the Framers may have been, each delegate to the Constitutional Convention was also concerned with the interests and relative positions of his state. fin82797_02_c02_023-052.indd 31 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.3 The Constitutional Convention Virginia Plan During the convention, James Madison joined with two of Virginia’s other delegates, George Washington and Governor Edmund Randolph, to introduce a system that provided for a strong central government. The proposal came to be known as the Virginia Plan, which was drafted by Madison and presented to the convention by
  • 24. Edmund Randolph. (Because Randolph presented it, it also came to be known as the Randolph Plan.) Under the plan, the people would select the House of Representatives as a practical expression of democracy. Its members would be close to the people and would stand for regular elections. Because the number of representatives each state had in the House was to be determined by its popula- tion, the plan favored large states such as Virginia. The legislature’s upper chamber, the Sen- ate, would be selected by the House of Representatives, and the legislature as a whole would choose the president. The Virginia Plan did not specify terms of office, but it did seek to limit the executive and members of the House to one term. Moreover, it called for an independent judiciary. The plan included other checks and balances. It allowed for legislative acts to be vetoed by a council composed of the executive and selected members of the judicial branch. Their veto could, in turn, be overridden by an unspecified legislative majority. Large states supported the Virginia Plan because it would grant them greater representation. The smaller states were generally opposed because they were afraid that they would lose substantial power in the national government. Among the provisions that worried many of the states was one that would have empowered the national government to use military force against those states that might otherwise refuse to comply with national authority.
  • 25. The New Jersey Plan Those opposed to the Virginia Plan favored an alternative that arose from the New Jersey delega- tion. One member of that delegation, William Pat- erson (1745–1806), intended to block any nation- alist plan to overhaul the Articles of Confederation. He launched an assault on the Virginia Plan. He was particularly concerned about proportional representation—the idea that large states would have more representatives than the small ones. He believed that the large states would dominate the small states and that Virginia specifically intended to undermine the other states’ sovereign powers. As a counterproposal, he, along with David Brear- ley of New Jersey, Roger Sherman of Connecticut, Luther Martin of Maryland, and John Lansing of New York, offered what came to be known as the New Jersey Plan. Whereas the Virginia Plan called for a supreme national government, the New Jer- sey Plan called for one that would be distinctly © Bettmann/Corbis William Paterson was the main architect of the New Jersey Plan. The plan called for a federal government, with pow- ers divided between national and state governments. fin82797_02_c02_023-052.indd 32 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
  • 26. Section 2.3 The Constitutional Convention federal, with carefully listed powers divided between national and state governments. This meant that a federal government would be the combination of the states and the national gov- ernment, whose power and authority would, in effect, be shared. Under this proposal, there would be a single-chamber national legislature in which each state, regardless of size, would have one vote. Paterson’s intention was to protect the power of smaller states. While the plan would grant the new government the power to levy taxes on imports and to regulate trade and commerce, the representation of individual states would be no different from how it had been under the Articles of Confederation. Under the New Jersey Plan, the “federal executive” would be elected by the individual states represented in Congress. Again, this was consistent with the executive committee system under the Articles. Nationalists such as Madison thought that the proposal represented a backward step. For a full month, the Convention was deadlocked between large-state nationalists and small-state defenders. Connecticut Plan and the Great Compromise As a compromise, Roger Sherman and Oliver Ellsworth of Connecticut proposed the Con- necticut Plan (also known as the Great Compromise), which, like the Virginia Plan, would create a bicameral legislature. This plan was designed to please
  • 27. both nationalists and states’ rights proponents. As with the Virginia Plan, representation in the House of Representatives would be based on population, with each member representing a district of a specified num- ber of persons. Larger states would have more representatives than smaller states would. To foster closeness between representatives and the people, House members would serve for 2 years and then stand for reelection. The Connecticut Plan also indicated that all bills for raising taxes had to originate in the House of Representatives. To ensure that each state would get the number of representatives to which it was entitled, a census of all inhabitants of the United States was to be taken every 10 years. The Senate was designed to be similar to the body proposed by the New Jersey Plan. The Senate would specifically represent the states. In recognition of their equal sovereignty, each state would have two seats, regardless of population. Contrary to the Vir- ginia Plan, which envisioned the House selecting senators, the Connecticut Plan allowed for members to be directly chosen by their respective state legis- latures (a practice that would be replaced by the 17th Amendment, ratified in 1913, which provided for the popular election of U.S. senators). Senators would serve for terms of 6 years. A 6-year term would suggest that senators would not have to worry about reelection soon after taking office, so they would have greater opportunity to think about the larger public interest. Senate terms would also be staggered so that one third of the Senate would be up for election every 2 years. Elections would
  • 28. Universal Images Group/Getty Images The Connecticut Compromise, painted by Bradley Stevens, depicts Roger Sherman, left, and Oliver Ellsworth drafting the Connecticut Plan, which called for senators to be appointed by their respective legislatures. fin82797_02_c02_023-052.indd 33 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.3 The Constitutional Convention take place in even-numbered years. Because only a portion of the Senate could potentially be replaced, there would be stability and continuity. Figure 2.1 compares the Virginia Plan, the New Jersey Plan, and the Great Compromise. Figure 2.1: Comparing the plans The Great Compromise included elements of both the Virginia and the New Jersey Plans. Adapted from http://chogger.com/fhMeb/great-compromise fin82797_02_c02_023-052.indd 34 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
  • 29. Section 2.3 The Constitutional Convention The Electoral College Madison initially wanted the executive to be chosen by the legislative body. He believed that, because the executive implements legislative actions, the executive should be responsive to it. Further, the concept of a president was that of somebody who presided over legislative hearings. Opponents claimed that this proposal was inconsistent with republican principles of separation of powers. The Framers were also not ready to allow the people to directly elect the president because they were not convinced that the people could make rational, dispas- sionate decisions. Meanwhile, the states wanted a say in selecting the president even though the Framers believed that the states would have too much power if they chose the president. As a compromise, the Framers created the Electoral College as the body responsible for elect- ing the president. The U.S. Constitution does not outline how electors are chosen, nor does it state what role, if any, the popular vote will play in determining how electors vote when selecting the president. Almost all states require the candidate who wins the popular vote in the state to earn all of that state’s Electoral College votes (the “winner-take-all” system, which is in place in 48 states), while other states (Nebraska and Maine) use a district system for allo- cating Electoral College votes based on the popular vote. The number of members of Congress
  • 30. representing any state equals the number of electors representing that state in the Electoral College. In practical terms, then, the president is indirectly chosen by the people. The Framers actually hoped that this peculiar system would not work. To win the presidency, a candidate would have to receive a majority of electoral votes. In the elections of 1796 and 1800, this meant that a minimum of 70 electoral votes were needed to win a presidential election. (Today, out of 538 electors, 270 are needed to win; see Figure 2.2. The number of available electoral votes has been 538 since 1964 because the District of Columbia was given three electoral votes with the 23rd Amendment in 1961. There are 435 members of the U.S. House of Representatives and 100 senators.) At the time, a presidential election consisted of several candidates. The candidate receiving the second- highest number of electoral votes became the vice president. The Constitution provides that if the Electoral College fails to select a president, the House of Representatives selects the president and the Senate selects the vice president. Each state receives one vote in both decisions. Virginia Plan supporters wanted presidential elections to happen this way. fin82797_02_c02_023-052.indd 35 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
  • 31. Section 2.3 The Constitutional Convention Figure 2.2: The Electoral College The Constitution called for the national executive to be chosen by the Electoral College rather than being directly elected by the people. Note that North Carolina and Rhode Island had not yet ratified the Constitution by the 1789 election, and New York did not choose electors for this election. Data from “2012 Presidential General Election Results,” by D. Leip, 2012 (http://uselectionatlas.org/RESULTS/index.html) and “U.S. Electoral College,” by National Archives and Records Administration, n.d. (http://www.archives.gov/federal- register/electoral-college /votes/1789_1821.html#1788). fin82797_02_c02_023-052.indd 36 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.3 The Constitutional Convention The Three-Fifths Compromise The Connecticut Plan also offered a compromise between free and slave states. Slave states, such as Virginia, had larger populations because they had slaves (see Figure 2.3). William Paterson was particularly opposed to including slaves in the state’s popula-
  • 32. tion because doing so would indirectly encourage the slave trade. The Con- tinental Congress had initially pro- posed a three-fifths ratio for counting “all other persons” (to avoid using the term “slave”; persons, whether free or slave, included men, women, and chil- dren for Census purposes) as the basis for apportioning legislative representation. In pointing this out at the Convention, Paterson called attention to the hypocrisy of the Virginia delegation, which viewed slaves as people only when it came to demanding more representation. The hypocrisy irked him all the more deeply, perhaps, because Paterson himself was a slave owner. Stepping into the breach, Rufus King of Massachusetts asked the delegates to reaffirm their earlier support of the three- fifths ratio. As King saw it, Northern commercial states would benefit from a more powerful national government that could regulate trade. In return, Paterson was willing to offer the South some representation for their slave wealth. This imperfect bargain recognized a hard political reality between states seeking to main- tain slavery and those that preferred to fashion a new constitution without it. What followed was a debate focusing on individual state interests rather than moral concerns about slavery. Under the Three-Fifths Clause, every five slaves were counted as though they were three free citizens for the purposes of increasing representation in slave states. The 13th Amendment abolished slavery, which nullified the Three-Fifths Clause.
  • 33. SuperStock/SuperStock The Connecticut Plan offered a compromise between slave and free states by counting each slave as three fifths of a person. fin82797_02_c02_023-052.indd 37 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.3 The Constitutional Convention What the Framers Attempted to Achieve Consider that the Framers wanted a government that would be durable. There was a high probability that the Constitution, being an experiment in liberty, would fail. Durability, they believed, would be achieved through the republican principle of separation of powers. By dividing power among three branches of government, checks and balances could be insti- tuted so that no one branch would have enough power to govern without the cooperation of the others. And, no one branch would have sufficient power to violate individual liberties. Ultimately, the Framers sought to create a constitutional system that would govern through consensus. The U.S. Constitution’s survival for more than 200 years demonstrates that the Framers’ work was nothing short of remarkable. Figure 2.3: Slave populations
  • 34. Because slaves made up a substantial portion of the population in many slave-holding states, delegates from those states pushed to count those individuals toward their total population. Members from non- slave-holding states objected on the grounds that it would result in disproportionate representation and possibly encourage the continuation of slavery. In the end, both sides agreed to the Three-Fifths Clause as part of the Great Compromise. Joeryancivilwar.com fin82797_02_c02_023-052.indd 38 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.3 The Constitutional Convention The U.S. Constitution requires that laws be enacted with the approval of both legislative chambers. The check of a bicameral legislature makes consensus difficult because each chamber represents different constituencies. A senator takes a statewide approach, while a House member represents 30,000 persons in a single district. Achieving consensus through separation of powers ideally results in a government achieving some republican virtue. Coop- eration is further achieved through the shared functions of appointments and treaty mak- ing. The executive initiates both actions, although both require Senate approval. Because of
  • 35. the requirement for elected senators to approve these actions, the president’s opportunities to impose his or her will and abuse his or her power through these processes are limited. Rejected treaties (e.g., the Treaty of Versailles, which formed the League of Nations in 1920) or nominations (e.g., U.S. Supreme Court Associate Justice nominee Robert Bork in 1987) can- not be vetoed or overturned. The Constitution retains strict separation between the branches by prohibiting dual office holding. One may not hold an executive branch position while still holding a seat in Congress or on the U.S. Supreme Court. Members of Congress who are appointed by the president to serve in the Cabinet or on the Supreme Court must resign their legislative positions. Continuity and Change With the British Constitution The Framers sought to create a constitutional system similar to the constitutional monarchy from which they had separated. They wanted something that would reflect the mixed consti- tution they knew while devel- oping the separation of powers to accomplish this objective. The institutions they created were not radically different from their British counterparts. The U.S. House of Represen- tatives resembled the British House of Commons, while the
  • 36. U.S. Senate reflected the elite notion of the British House of Lords. The U.S. executive par- alleled the British monarchy, although the U.S. executive would not hold a hereditary title. What the Framers accom- plished, then, was a cleansing of British institutions built on republican foundations while maintaining continuity with what they saw as the best of British traditions. Juergen Schonnop/iStock/Thinkstock The Framers created institutions that were not radically different from those of the British Parliament. The U.S. House of Representatives was modeled on the British House of Commons, while the Senate was similar in some ways to the House of Lords. fin82797_02_c02_023-052.indd 39 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.4 The Three Branches of Government 2.4 The Three Branches of Government The U.S. Constitution is structured around the fundamental principle of separation of powers, the idea that one way to prevent abuse of power, or tyranny, is to separate government pow- ers. The lawmaking process is the greatest of government
  • 37. powers. Consequently, Article I, the legislative branch, is introduced first, followed by the executive branch outlined in Article II. It is the responsibility of the executive branch to enforce the laws enacted by the legislative branch. The judiciary branch, outlined in Article III, is responsible for resolving legal disputes and adjudicating the laws. Table 2.1 provides a brief listing of some of the branches’ different functions, or powers. Table 2.1: Branch powers Legislative Executive Judicial • Coin money • Levy taxes • Raise armies • Regulate interstate commerce • Declare war • Confirm presidential appointments • Ratify treaties • Impeach and remove presi- dents and judges • Do what is “necessary and proper” • Act as commander in chief of the military forces • Execute laws • Negotiate treaties
  • 38. • Appoint judges • Appoint ambassadors • Issue pardons • Veto legislation • Conduct foreign policy • Do what is “necessary and proper” • Review laws made by the legislative branch • Engage in constitutional review • Settle disputes between states and national government The Legislative Congress, the legislative branch, is considered the first branch of government. Article I estab- lishes that the Congress will be composed of two chambers: a House of Representatives and a Senate. Article I, Section 8 deals with the expressed powers of Congress. Among other powers, the U.S. Constitution gives Congress the authority to • impose and collect duties and other taxes necessary to pay national debt and pro- vide for the common defense; • borrow money on U.S. credit; • regulate commerce with foreign nations and among the states
  • 39. of the union; • establish uniform rules of naturalization and bankruptcy; • coin money and determine its value; • establish post offices and post roads; • promote the progress of science and useful arts by issuing patents; fin82797_02_c02_023-052.indd 40 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.4 The Three Branches of Government • create courts and tiers of courts below the Supreme Court; • declare war, raise and support armies, and provide and maintain a navy; • establish rules for government and regulations of land and naval forces; • call forth the militia to execute laws of the union and suppress insurrections and defend against foreign invasions; • organize, arm, and discipline the militia; • exercise exclusive legislation in all cases whatsoever over the district that is to become the national seat of government (Washington, D.C.); and • “make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government
  • 40. of the United States, or in any Department or Officer thereof.” This last power forms the basis for expansive congressional authority, known as the implied power. The implied power means that, lacking expressed power, Congress may take action if it is “necessary and proper” for fulfilling its expressed powers and obligations. One example is a national bank. While Article I does not empower Congress to create a national bank, Con- gress has inferred that right on the grounds that doing so would be necessary for Congress to fulfill its expressed power of coining money. The Executive The executive branch is considered the second branch of government. Article II of the Consti- tution establishes that executive power shall be vested in the president of the United States, whose term of office will be 4 years. It then establishes the procedures for presidential selec- tion through the Electoral College. When the president enters office, he or she is required to take the fol- lowing oath: “I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my Abil- ity, preserve, protect, and defend the Constitution of the United States.” Article II, Section 2 establishes the president as the commander in chief of the armed forces. As commander in chief, the president is said to have
  • 41. the power of the sword, which has also come to reflect the president’s power and authority to enforce national laws. The president’s com- mander in chief power has histori- cally been the basis for presidential prerogative, which will be discussed Scott Andrews-Pool/Getty Images Supreme Court Chief Justice John Roberts adminis- ters the presidential oath of office to Barack Obama on January 20, 2013. The president’s principal pow- ers are to serve as commander in chief of the armed forces, enforce the laws passed by Congress, and pro- tect and defend the Constitution. fin82797_02_c02_023-052.indd 41 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.4 The Three Branches of Government further in Chapter 5. For example, during the Civil War (1861– 1865), President Abraham Lin- coln did not have the stated authority to use military force against states that sought to leave the union. He justified his action by arguing that preserving and protecting the Constitution would be meaningless if there were no union. Article II also gives the president the authority to make treaties with foreign governments
  • 42. subject to the advice and consent of the Senate (ratification) and to make Cabinet appoint- ments and ambassador and judicial appointments, all of which require Senate confirmation. The president is also required to give Congress information on the state of the union “from time to time.” By tradition, this has been an annual report. (Since 1913, with President Wood- row Wilson, the state of the union has been delivered in a speech before a joint session of Congress. Prior to that, presidents would typically send a written report and a clerk would read it before the Congress.) Article I, Section 7 gives the president the power to veto bills passed by Congress. Hamilton viewed the presidential veto as a protection against legislative overreach, such as when Con- gress abused its power in the legislative process. The first presidents rarely used the veto. George Washington vetoed two bills, while James Madison used the power five times. More recently, President George W. Bush (2001–2009) vetoed 12 bills, while President Bill Clinton (1993–2001) used it 37 times. Congress can override a presidential veto with a two-thirds vote in both chambers. One key feature of the separation of powers is the procedural due process level of cooperation needed to remove an executive from office. Unlike a parliamentary system, such as in contem- porary England, where the head of the government can be removed through a no-confidence vote, the only mechanism for removing the president is conviction following impeachment,
  • 43. or an accusation of wrongdoing. The president may be removed for “Treason, Bribery, or other high Crimes and Misdemeanors.” The U.S. House of Representatives has the power of impeach- ment, while the U.S. Senate holds trials that may lead to conviction. Removing a president requires a coordinated effort between the House and the Senate. The House of Representatives first votes on articles of impeachment. If passed, the president is tried by the U.S. Senate with the U.S. Supreme Court chief justice presiding. Conviction requires a two-thirds vote in the Senate. If convicted, the president is removed from office, and the vice president is sworn in. The bar for impeachment is so high that it is rarely implemented. Only two presidents (Andrew Johnson in 1868 and Bill Clinton in 1998) have been impeached, and both were acquitted by the Senate. Still, members of Congress may threaten the president with initiating impeachment proceedings in hopes that the president’s behavior will change. The Constitution also provides for electing the vice president. Electing the president and vice president together on the same ticket did not originate with the Constitution, which was writ- ten to give the presidency to the person with the most electoral votes and the vice presidency to the person coming in second. In 1804, the Constitution was amended so that the president and vice president would be chosen together on a single ticket. The Judiciary
  • 44. Article III outlines the national court system and establishes that the judicial power be vested in one Supreme Court and other lower courts as determined by Congress. Supreme Court fin82797_02_c02_023-052.indd 42 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.4 The Three Branches of Government authority extends to all cases in law arising under the Constitution, the laws of the United States, and treaties. Cases involving disputes between the national and state governments, or between the national government and foreign governments, are heard by the Supreme Court. The president appoints Supreme Court justices for life “with good behavior.” Senate confirma- tion requires a majority vote. This is simply another example of the Framers’ system of checks and balances (see Figure 2.4 for an illustration of how the three branches check and balance one another). The Constitution says little else about the judiciary or its authority, in part because the Fram- ers thought that this branch would be little used. We commonly associate the Court’s power of judicial review with the Constitution. However, the Supreme Court gave itself the power of judicial review in 1803, after the Constitution took effect. While the Framers expected the
  • 45. judiciary branch would be the weakest of the three branches, we now look at the national court system as being extremely powerful. Figure 2.4: The three branches of government Forming three separate branches of government, the executive, the legislative, and the judicial, ensures that the rights and liberties of the people are protected, and no one branch has too much power. The legislative branch (which includes the Senate and House of Representatives) creates the laws; the executive branch (which includes the president, vice president, and Cabinet) carries out the laws; and the judicial branch (which includes the Supreme Court and other federal courts) evaluates the laws. Each government branch checks another, thus establishing a strong and fair national government. Used with permission from David Miller. fin82797_02_c02_023-052.indd 43 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.5 Ratifying the Constitution The Basis for National Power The Constitution establishes national power through both the Supremacy Clause in Article VI and the Commerce Clause in Article I. The Supremacy Clause states that laws passed by Con-
  • 46. gress and signed by the president are the supreme laws of the land. The Commerce Clause allows Congress to regulate the movement of goods across state lines, seeking to solve one of the problems experienced under the Articles of Confederation. Both of these clauses will be discussed in more detail in Chapter 3. The American Constitution as a Living Document Article V of the Constitution provides a constitutional amendment process, although the pro- cess is not easy, because it requires supermajorities to succeed. The Constitution provides for amendments to be proposed by a two-thirds vote in each house of Congress or at a con- vention called by two thirds of the states. Amendments may be ratified by three fourths of the state legislatures or three-fourths ratifying conventions in the states. The Congress-state legislature combination has been used for 26 of the 27 ratified amendments. The Framers also designed the Constitution to maintain a degree of continuity. Unlike many state constitutions, which are long and detailed, the U.S. Constitution is short and ambiguous. This allows for its interpretation and reinterpretation. The Constitution is as relevant today as it was when it was written more than 200 years ago, despite the vast differences between then and now. 2.5 Ratifying the Constitution There was considerable debate over how the Constitution should
  • 47. be ratified. Some believed that it should be ratified through the unanimous approval of the states (after all, it would amend, quite significantly, the Articles of Confederation, which required unanimous approval). Others argued that each state should hold its own convention to approve it. The latter argu- ment prevailed. The next question considered how many states would be needed to approve it. Requiring that all 13 states approve the Constitution might make ratification impossible, as one state could withhold its approval to undermine the entire process (that Rhode Island did not send a representative to the Constitutional Convention should be noted; it feared losing power if the Articles of Confederation changed). Roger Sherman of Connecticut argued that at least 10 states ratifying was needed to be legitimate. Madison proposed a complicated formula where ratification would occur with any seven states entitled to at least 33 members of the House of Representatives. This approach favored large states. The delegates agreed to nine states (roughly two thirds). By deciding on nine states and using specially elected conventions, the delegates made ratification easier, though some argued that requiring the support of only nine states violated the spirit of the resolution that authorized the Convention in the first place. Federalists Versus Anti-Federalists One critical debate surrounding the ratification of the new constitution occurred between Federalists and Anti-Federalists over the issue of the national Bill of Rights. Federalists
  • 48. fin82797_02_c02_023-052.indd 44 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.5 Ratifying the Constitution argued that a national bill of rights was unnecessary because many states already had bills of rights in their own constitutions. Protecting individual rights would occur at the state level. The federal government, they argued, would be concerned only with relations between the states and the national authority. The Federalists maintained that a national bill of rights would threaten individual liberties because the Con- stitution created a blueprint for lim- ited government. To include a sepa- rate bill of rights implied that the national government had powers and authority that were not speci- fied in the Constitution. If the Con- stitution had to spell out what the national government could not do, the implication was that anything not covered would then be allowed. The Anti-Federalists countered that, because many states already had bills of rights, it was that much more important to have a national bill of rights in order to protect the states.
  • 49. Including a bill of rights would make it clear what the national govern- ment could not do. Consider freedom of speech. To pro- hibit the government from infring- ing on free speech does not imply that the government could infringe on free speech in the absence of an express prohibition, Anti-Federalists argued. Rather, the authority to prohibit speech could be assumed based on the Constitution’s silence on questions of free speech. Put differently, the national government would assume that it had specific powers unless the Constitution clearly prohibited them. In the minds of the Anti- Federalists, the absence of a bill of rights would enable the national government to violate individual rights as well as states’ rights. Moreover, the Anti-Federalists stated that they would oppose ratification unless there was a bill of rights. Ultimately, James Madison promised to seek ratification of the Bill of Rights 2 years after the Constitution was ratified. The Bill of Rights The Bill of Rights consists of 10 amendments (see Figure 2.5) that establish rights of expres- sion (speech, press, peaceable assembly, petitioning the government, and religious exercise and that Congress will not establish a national religion), the rights of those accused of crimes (including, but not limited to, the right to jury trials and counsel in criminal cases, due pro- cess, and protection from unreasonable search and seizure, self-
  • 50. incrimination, and cruel and unusual punishment), the right to bear arms, and states’ rights. When ratified in 1791, the Bill of Rights applied only to the national government (note that the first word of the Bill of Rights is “Congress,” the national legislature), although U.S. Supreme Court decisions since then Superstock/Superstock The original Bill of Rights. Federalists argued that a bill of rights was unnecessary, while Anti-Federalists argued against ratification without one. fin82797_02_c02_023-052.indd 45 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Section 2.5 Ratifying the Constitution have applied provisions of the Bill of Rights to the states on a case-by-case basis, beginning in 1925 with Gitlow v. New York. Or consider the Second Amendment, which states, “A well-regulated Mili- tia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.” The Anti-Federalists con- sidered these rights to be crucial to the integrity of state sovereignty
  • 51. because they meant that the national government could not interfere with the right of the people to bear arms individually and as members of their state’s militia. The purpose of the Bill of Rights, then, was to protect state sovereignty. By prohibiting the national government from only certain actions, the states were free to do what they wanted unless they were forbidden to do so by the Constitution or the Supremacy Clause. The 10th Amendment, known as the states’ rights amendment, says, “The powers not delegated to the United States by the Constitution, nor prohib- ited by it to the States, are reserved to the States respectively, or to the people.” In essence, the 10th Amend- ment allows the states to do what they want unless they are forbidden by the national government to do so. Interpretation of the Bill of Rights by the U.S. Supreme Court began to change dramatically following ratification of the 14th Amendment in 1868. The Supreme Court has since established that no state may deny citizens their privileges and immunities and equal protection of the law. Since ratification of the 14th Amendment, the Supreme Court applies the Bill of Rights to the states on a case-by-case basis (called “selective interpretation”).
  • 52. Superstock/Superstock The Second Amendment gives the right for state residents to bear arms. In effect, it means that the national government cannot disarm the states, and it cuts to the core of the issues of state sovereignty. Figure 2.5: Summary of the Bill of Rights The first 10 amendments to the U.S. Constitution are collectively known as the Bill of Rights. Adapted from U.S. Const. amend. I–X. fin82797_02_c02_023-052.indd 46 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources The Federalist Papers The debates over what to include in the Constitution and how to ratify it inspired a set of essays known as The Federalist Papers. These essays were penned by John Jay (1745–1829), Alexan- der Hamilton, and James Madison, who were concerned about New York’s reluctance to ratify the Constitution. The Federalist Papers were published anonymously as a series of editorials in New York newspapers. (They used the pseudonym “Publius,”
  • 53. which is derived from the Latin “publicus,” meaning “of the people.”) The authors’ objective was to persuade the people of New York that the proposed constitu- tion was in their best interest. If the people were persuaded, they in turn would petition their state conven- tions to support ratification. These 85 editorials were collected and came to be known as The Federalist Papers, or simply The Federalist. The Federalist Papers were not typical opinion pieces; they were lengthy and thoughtful essays focusing on various aspects of the proposed constitution, such as the problems of the Articles of Con- federation, the structure of each branch of government, and the characteristics of the new gov- ernment and the proposed Bill of Rights. It was clear that, being published in newspapers, The Fed- eralist Papers were intended for an educated, literate audience. As better educated, more affluent per- sons were also those with political rights, it was expected that readers would pressure their state govern- ment to support ratification. Summary and Resources Chapter Summary The Framers came to Philadelphia in 1787 to form a more
  • 54. perfect union, provide for the com- mon defense, and promote the general welfare. They convened the Constitutional Convention because the Articles of Confederation proved to be unworkable. Under the Articles, there was no national unity; rather, the confederation was a loose collection of sovereign states. The cen- tral government had no real authority and had no power to respond to a crisis. Because the issue of a new constitution was controversial, the convention had to be held in secret. Once it was under way, several proposals were put forth, but the one that was ultimately adopted was the Connecticut Plan. It established separation of powers on the basis of republican principles. The National Gallery of Art John Jay, along with Alexander Hamilton and James Madison, anonymously published a series of editori- als in New York papers in an effort to persuade New Yorkers that it was in their best interest to ratify the Constitution. The articles were later published as The Federalist Papers. fin82797_02_c02_023-052.indd 47 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Although there is separation of powers among the legislative, executive, and judicial branches
  • 55. of government, as put forth in Articles I, II, and III, there are also considerable shared func- tions. Still, there was concern over the issue of state sovereignty, which was expressed in the debate between the Federalists and Anti-Federalists over the inclusion of a bill of rights. As ultimately adopted, the Bill of Rights was designed to preserve state sovereignty and states’ rights and limit national authority. Meanwhile, to calm the fears of some, three Framers argued for ratification through The Fed- eralist Papers. James Madison argued in Federalist No. 10 that the federal system would dilute the power of factions. The Federalist Papers argued the case for ratifying and supporting the proposed Constitution. See Timeline: Path to the Constitution for major milestones in the cre- ation of the U.S. Constitution. Key Ideas to Remember • The U.S. Constitution is modeled on earlier forms of governments that existed in the colonies prior to the American Revolution. • The Framers of the Constitution considered themselves to be good English subjects but found it necessary to separate from the British Crown because it imposed its authority on, and restricted the liberties of, the colonies. • The first American constitution was the Articles of Confederation, but its lack of centralized power and authority proved to be a major weakness.
  • 56. • While some delegates to the Constitutional Convention sought to create a wholly new government from what existed under the Articles of Confederation, others sought to maintain states’ rights. The various proposals before the convention repre- sented these divisions. • The plan that was adopted was the Connecticut Plan. It was also known as the Great Compromise because it allowed for proportional representation in the House of Representatives, which is what the large states wanted, and two senators from each state, which is what small states wanted. • The U.S. Constitution is built on the central idea that if power is divided among three branches of government, and each branch has separate functions, no one branch will have sufficient power to encroach upon the rights and liberties of individuals. • The debate between the Federalists and the Anti-Federalists over the inclusion of a national bill of rights was an extension of the debate between advocates of central authority and advocates of states’ rights. • When the Bill of Rights was ratified, it applied only to the national government and not the states, which meant that state sovereignty would be protected. Questions to Consider
  • 57. 1. What is the significance of separation of powers? 2. What is unique about the U.S. Constitution? 3. What are the pros and cons of the New Jersey and the Virginia Plans? 4. In what ways is the U.S. Constitution grounded in historical tradition? 5. As an individual, what rights does the Constitution give you if you are a U.S. citizen? 6. Given the nature of checks and balances, was the government shutdown of 2013 unavoidable? fin82797_02_c02_023-052.indd 48 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Timeline: Path to the Constitution Photo credits (top to bottom): radlovskyaroslav/iStock/Thinkstock, Brand X Pictures/Stockbyte/Thinkstock, peterspiro/iStock/Thinkstock, Photodisc/Photodisc/Thinkstock, amanaimagesRF/Thinkstock. fin82797_02_c02_023-052.indd 49 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
  • 58. Summary and Resources Key Terms Annapolis Convention A gathering that preceded the Constitutional Convention, where delegates began to discuss ways to improve the Articles of Confederation. Anti-Federalists Those who opposed the ratification of the U.S. Constitution, in part because it did not include a bill of rights. appropriating The act of the legisla- ture designating money for a specific purpose, such as on a social program or infrastructure. Articles of Confederation The first U.S. constitution; a document that loosely bound 13 independent sovereign states together. Bill of Rights The first 10 amendments to the Constitution. central government A government in which authority and power are concentrated in a single entity. Connecticut Plan A compromise between the large and small states over how the leg- islative branch would be apportioned; also known as the Great Compromise. Constitutional Convention The meeting in
  • 59. Philadelphia where delegates met in secret to write a new constitution. Continental Congress Legislature repre- senting the U.S. colonies. Electoral College Persons selected at the state level who select the president. expressed powers The duties of Congress as stipulated in Article I, Section 8 of the Constitution; among them are the ability to collect taxes, borrow money, regulate com- merce, coin money, establish post offices and post roads, and declare war. federal The division of power and author- ity between units of government, such as the states and the national government. Federalists Those who supported the ratifi- cation of the U.S. Constitution even though it did not include a bill of rights. Great Compromise See Connecticut Plan. gridlock In U.S. politics, a situation of extensive disagreement within one house of Congress, between Congress and the presi- dent, or between both houses of Congress that makes it difficult to pass laws. impeachment An accusation of wrongdo- ing against the president or other public offi- cial that triggers a trial; conviction results in automatic removal from office.
  • 60. implied power Power given to Congress that is “necessary and proper” for carrying out its powers listed in Article I, Section 8. interstate commerce Conducting business and moving goods across state lines. Mayflower Compact An agreement among the Pilgrims on board the Mayflower to have self-government in the settlement once they reached the colonies; one of the earlier bases for the U.S. Constitution. New Jersey Plan A proposal for a federal government with carefully listed powers, arising from the New Jersey delegation at the Constitutional Convention. Virginia Plan A proposal for a supreme national government made by the Virginia delegates to the Constitutional Convention. fin82797_02_c02_023-052.indd 50 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Further Reading Bailyn, B. (1970). The origins of American politics. New York, NY: Vintage Books.
  • 61. Barker, E. (Ed.). (1946). The politics of Aristotle. Oxford, UK and New York, NY: Oxford University Press. Beard, C. A. (1913). An economic interpretation of the Constitution of the United States. New York, NY: Macmillan. Beeman, R. (2009). Plain honest men: The making of the American Constitution. New York, NY: Random House. Farrand, M. (1911). The records of the Federal Convention of 1787 (Vols. 1–4). New Haven, CT: Yale University Press. Fisher, L. (1997). Constitutional conflicts between Congress and the president (4th ed.). Lawrence, KS: University Press of Kansas. Hamilton, A., Madison, J., & Jay, J. (1982). The Federalist papers. New York, NY: Bantam Classic Edition. (Original work published 1787–1788) Nedelsky, J. (1990). Private property and the limits of American constitutionalism: The Madisonian framework and its legacy. Chicago, IL and London, UK: University of Chicago Press. fin82797_02_c02_023-052.indd 51 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. fin82797_02_c02_023-052.indd 52 3/24/16 1:39 PM © 2016 Bridgepoint Education, Inc. All rights reserved. Not for
  • 62. resale or redistribution. 1 ACCT 2005 Financial Accounting 2 SP2 2017 FEEDBACK ON DRAFTS OF STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME I have now reviewed the draft submissions and offer the following comments/advice. These comments primarily focus on the format (not actual calculations or the treatment of specific events/transactions) and these comments may, or may not apply, to individual student’s drafts. I have not provided comments regarding every error that occurred – only those that were noted for a number of students.
  • 63. I also realise that this is a ‘draft’ and not the final product/assignment submission, so it may be that you already intend to address some points that I raise. First, congratulations are due to many of you. It was clear that the majority of students who submitted a draft had followed the instructions and read the FAQ’s. I know that this was optional but it was disappointing that over 40% of students did not submit a draft. To those students who did submit a draft, this means you are off to a good start! For those who have not yet done so, PLEASE read the instructions and FAQs carefully, and take time to review the assignment overview video before you complete this assignment if you are to avoid a number of common errors. For a number of drafts this statement was correctly formatted. However there were many which were not. I have provided below comments on some common problems and advice. These comments have been numbered to allow for easy reference when completing the “Statement on Use of Draft
  • 64. Feedback” required with your final submission REMEMBER: EVEN IF YOU DID NOT SUBMIT THIS DRAFT OPTION YOU WILL STILL NEED TO INCLUDE THIS STATEMENT ON USE OF DRAFT FEEDBACK IN YOUR FINAL ASSIGNMENT ON THE ASSIGNMENT COVER SHEET. IF YOU DO NOT, 5 MARKS WILL BE DEDUCTED FROM YOUR FINAL ASSIGNMENT MARK. 1. It was disappointing that a number of student’s statements were still formatted as in first year courses and did not comply with the assignment instructions (e.g. some students presented a fully classified statement with the analysis of expenses included in this (i.e. on the front of the statement) – the assignment required only those items required to be included in this statement. The only time additional lines should be used is where it is absolutely necessary – e.g. expenses, excluding finance costs or other income). 2. The assignment instructions explicitly directed that only the required (minimum) line items be included in (i.e. on the front of) this statement. This means:
  • 65. 2.1. If there is a choice to disclose the information in the statements or the notes, the disclosures need to be in the notes. For example, the analysis of expense must be in the notes (not in the statement). Students should NOT follow the examples in AASB 101 para 102 or 103 for this statement (these examples would apply where the analysis is included in – on the front 2 of - the statement). 2.2. Individual expenses (such as COGS and other amounts such as depreciation expense) should NOT be in (on the front of) the statement. 2.3. Individual material items of expense (or revenue or other income) are disclosed in the notes; not separately on the front of the statement. 2.4. A number of students split expenses into ‘expenses’ and ‘other expenses’ and/or ’loss’. This is not correct. Unless the expense is a finance cost or tax expense, then if an item
  • 66. is an expense you need to include in the line item for “expenses excluding finance costs”. Please refer to the assignment instructions. There are also examples of statements with only the required line items on the front in your topic review questions/activities. It was apparent that some students had simply ‘copied’ the items/format from model or actual reports. Such statements will not follow the assignment instructions and will therefore be heavily penalised. Further, remember we are assessing your ability to format statements and notes (not your ability to ‘copy’ or use a template). 3. You need a comparative column for this statement (some students had comparative columns with numbers. While you can ‘make up’ numbers, you can simply use ‘x’ in your comparative column in place of numbers).
  • 67. 4. Some students had a profit and loss statement – not a statement of profit or loss and other comprehensive income. 5. The instructions are clear that there are no items of other comprehensive income (see below): Please note: In this case study there are no items of other comprehensive income. In (on the front of) this statement you will need to include a line item for items of other comprehensive income however this will have a zero balance (please refer to the answer to topic review questions of topic 2 for an example). 5.1. Despite this a number of drafts had included items as ‘other comprehensive income’ items. This is clearly incorrect. If you did this you need to re- assess where these items should be included. 6. It is apparent that a number of students are still confused about what to include as ‘revenues’
  • 68. and what to include as ‘other income’ (i.e. income items that are not revenue). 6.1. Look at the advice in the instructions about how to differentiate between revenues and other income (e.g. look at para 74 of the Framework). Revenues are not limited to sales. 6.2. In this statement, a number of students split income into ‘revenue’ and ‘other revenue’. This is not correct. If an item is revenue then include it in revenues. If an item is not revenue then you will need to include as ‘other income’. Further some students split income into ‘revenue’ and ‘other income’ and ‘gain’; again for this assignment you can only have a split between ‘revenue’ and ‘other income’ (gains would be a type of other income and therefore would be included with any other items of other income). 3 6.3. Some students included a line item ‘Revenues’ in their statement and then included in
  • 69. brackets after this the components. In your actual assignment you cannot include this extra information on the front of the statement; only in the notes. 6.4. Some students incorrectly included sales revenue net (i.e. after deduction of cost of sales). 6.5. Sales returns are not an expense. 6.6. There were also some students confused about how to account for the sale of non- current assets. In these drafts, the most common mistake was the treatment of the sale of non-current assets; although a number of students did correctly calculate and present the impact from the sale of any non-current assets. Please refer to AASB 101 para 34 (and to the examples in the course materials). 7. Take care with finance costs. While some students had the correct finance costs amount, there were many who did not. Please refer to the FAQ document about what is, and is not, included in these. Also think about what is ‘included’ as an expense; e.g. if there is interest accrued and/or paid during a period then this needs to be recognised, but the principal amount is already
  • 70. included in the statement of financial position and consider if any balance date adjustment is required. Further, as a FAQ states, finance costs would not include the range of items that you may have considered or classified as ‘financial expenses’ in internal profit and loss statements in earlier courses. 8. Take care with treatment of items. Think about: 8.1. Can I include something as an extraordinary item? 8.2. We do not consider discontinued operations, revaluations or non-controlling interests in this course. 8.3. Should dividends be included in this statement? 8.4. Cleary provisions are confusing some students. Think about the timing (and also relate this to definitions of expenses, income etc in framework). Think about what entries were processed when the original provision/expense was recognized. Think about what entry the company has processed when the case was settled/finalised?
  • 71. Remember all items of income/expense must be recognised in the period they occur. 8.5. Read the information carefully. It was clear that a few students had not (and this perhaps is understandable given that this draft may have been done in a hurry). For example, the expenses in (a) are already included in the amount of ‘Expenses’ in the trial balance. Yet some students added all of the items listed in (a) to the amount of ‘Expenses’ in their statement. 9. Where line items do not apply to the company (such as share of profit/loss in associate, or discontinued operations) these should not be included in the statement. This would also apply to other statements such as the statement of financial position. For example, AASB 101 para 54(f) requires biological assets to be shown in (on the front) of the statement. However in this case study the company has no such assets so this line item would not be included. 10. There is no need to provide standard and paragraph references for the statements (this is
  • 72. only required for the notes); although we will not penalise students who include these for the statements. 11. In terms of ‘general’ formatting issues note the following (although I recognise that some of 4 these you may intend to ‘fix’ prior to the final assignment submitted): 11.1. You will need an appropriate company name in the header (title) of the statement, as well as indicating an appropriate date or period/year ending (remember from first year that this will differ between statements). 11.2. Do not confuse the date of authorisation of the financial report with the date the reporting period ends. 11.3. Be consistent with rounding. 11.4. Take care with spelling (I didn’t realise that ‘comprehensive’ could be misspelt so many
  • 73. 11.5. Take care with alignment/justification and fonts – again be consistent. 11.6. Printing: I did not print these out but in a few cases it was apparent that the statement would not have printed properly on the page. Please ensure that this does not happen with the final assignment as the marker marks what is printed! Either print out before you submit or use the print preview function to check this. Academic Integrity issues: 12. As you are no doubt aware from viewing your own Turnitin report, given the nature of this draft (and therefore high similarities) it is difficult to determine if there have been any academic integrity issues in this draft from the Turnitin reports (the Turnitin reports will identify this in the final assignments as these are larger and thus the matches more meaningful). 13. As this draft was restricted to one statement few referencing issues were able to be identified.
  • 74. However remember that the assignment instructions are explicit that you need to format these statements and the notes yourself. It appeared that some students had included (particularly at the bottom of the statement) parts taken/copied from other sources, such as: “This statement should be read in conjunction with the accompanying notes to the financial statements” Such inclusions are acceptable but you must reference them– some students had referenced and some had not. 14. Other inclusions (such as details re: earnings per share) are NOT required in this assignment and such inclusions will be penalised. As well as this, as it would be apparent that such inclusions must have been copied from other sources, if they are not adequately referenced they would also constitute plagiarism, and would thus be referred to the academic integrity officer.
  • 75. 15. A few students had scanned or included their draft in a picture format in their document or copied an object into the document in a way that it is not electronically readable/searchable. This is NOT acceptable for the final assignment. As the instructions state: The electronic submission for this assignment must be in the form of either a PDF or Word document and must be in a readable format so that it can be processed via Turnitin. Until a readable document is submitted late penalties will be applied. This means that you cannot ‘scan’ any significant parts or all of this assignment or insert statements, notes or reports as pictures or the like (if necessary, you can insert graphics, for example on the title page, as pictures and can scan the appendix only). 5 16. It also appears that some repeating students may have used their previous assignment as a basis.
  • 76. However you should note that you may not be able to use your previous assignment – see information below: Can you use parts of your previous assignment if repeating this course? 16.1. Only if you completed this previous assignment on an individual basis 16.2. If completed in a group then this includes the work of other students 16.3. Under university policy it is misconduct to submit an assignment that includes the work of other students (i.e. students outside your current group submitting the assignment). Please note that Turnitin will match to previous assignments. 17. Remember also to review the information on academic integrity in the assignment instruction booklet. You should not access other student’s assignments (either from previous study periods or this study period) nor allow other students to access your own work. As the instruction booklet states: You should note that in previous study periods a number of
  • 77. students received ZERO for this assignment as they had used other students work (from the same or previous study periods) as the basis for their own assignment. If you use another students assignment (e.g. from this or a previous study period) as a basis or ‘template’ for some/all and change for this case study you will be referred to the Academic Integrity officer and should expect to receive ZERO as a minimum penalty. I hope this document provides you with some useful information to consider in finalising your assignments. I would STRONGLY SUGGEST that if you have not already done so, that you read the assignment instructions and FAQ’s carefully, and also view the assignment overview video. Also, be aware that mistakes that have been explicitly noted in this document (for example, including Cost of sales on the front of the statement) will attract significant penalties if these mistakes occur in your final assignment. You should be able to access your marks for this draft from Learnonline.
  • 78. A very few students will not receive these bonus marks as they did not comply with the instructions for this draft. In particular, students will not receive these bonus marks if: draft as required. statement or a statement with no numbers so not related to this case study). notes or other information or other statements). Please do not be disheartened if you did not receive these marks due to not complying with the instructions. Treat this as an opportunity to learn. If you fail to follow the specific instructions for the assignment itself, you will lose many more marks. A number of students who did not submit the draft will no doubt achieve a high distinction grade in this assignment. If you have any questions about these you need to contact me
  • 79. via the course email ACCT2005 Enquiries [email protected] Please remember that specific feedback will not be provided on individual drafts. mailto:[email protected] 6 IMPORTANT: Just because you received 5/5 for this draft does not mean that your draft (or numbers therein) is correct. As stated above "These comments primarily focus on the format (not actual calculations or the treatment of specific events/transactions)". There was a broad cross-section of statements - both correct and incorrect. Remember this was a draft and so was not expected to be completely correct. All that the 5 marks indicate is that you submitted a draft relating to this case study in accordance with the instructions for this draft, not that your draft was in any way correct.
  • 80. All the best with the completion of your assignments. Sue McGowan Course coordinator FA2 FAQ Annual Report Assignment Page 1 of 12 Frequently Asked Questions & Answers on annual report assignment This document includes some common questions (and answers) that students often ask about this assignment. A general comment is that many questions from students (and many poor results in this type of assignment) are due to: • Not reading the assignment information and instructions. You need to read these carefully and a number of times – especially before you begin and before your final submission. The assignment has particular requirements and these must be followed! • Not understanding basic accounting procedures/entries from initial accounting courses. This is prerequisite knowledge so will not be ‘re- taught’ in this course. It is also important that you have worked through all of the materials for the first 5 topics (up to and including Liabilities) in this course BEFORE
  • 81. you finish this assignment. There are a number of topic review questions/activities that provide examples of the statements with only required line items in (on the front) the statement and recordings include examples of many of notes. QUESTION Can I include notes required by accounting standards other than those studied in first 5 topics. ANSWER The answer is no. Whilst is it pleasing to see students considering more standards you are required to only consider those standards in those topics identified in the assignment instructions and should not consider other standards (even those in later topics) - so you should not add in notes relating to for example, AASB 112. Having said this you should note that, for example, AASB 101 has some requirements that do not specify exactly what items need to be disclosed, however these do indicate that additional information that is required - for example look at AASB 101 para 77 which requires further sub classifications; AASB 101 para 97 which requires disclosure of material items of income/expense... so although we may not consider other standards you need to consider whether the standards that we are applying (such as AASB 101) would require disclosure of (for example) sub- classifications of particular items.
  • 82. I have restricted the standards to consider to ensure that the assignment is not too much work for students and also to ensure that I am fair to all students. To be fair in marking this assignment I need to ensure that all students have considered the same standards. Also a key purpose is to determine if students can read and apply the requirements of particular standards. By restricting the standards considered this allows me to better assess this. If you are looking at real or ‘model’ financial reports to assist you in this assignment, you should be aware that these will consider all of the accounting standards – many of which we do not consider at all in this course. I would suggest that to determine the notes required in this assignment you ‘work though’ the standards that are specified for this assignment to see what notes are required (given the information in this assignment) and then, if you wish, refer to actual or model reports for an example of how to prepare notes (although there are alternative formats for notes as accounting standards specify what needs to be disclosed but not necessarily ‘how’ in terms of format). You should not use the real or ‘model’ financial reports to determine what to include in (on the front of) statements or which notes are required for this assignment as these (as noted above) will consider other standards and have made
  • 83. FA2 FAQ Annual Report Assignment Page 2 of 12 choices about where to disclose information that do not follow the instructions for this assignment. Further these may not consider the version of standards we are applying. Remember- for each note that you include you need to identify the particular accounting standard (and the paragraph number) to justify the inclusion of that note. The standards you need to apply (and reference) in this assignment are AASB 101, AASB 108, AASB 110, AASB 1054 and AASB 137. QUESTION I am confused about what to adjust for – I am not sure what items I need to adjust in the trial balance. ANSWER It can be confusing. You need to read the information carefully. Remember in additional information it states: Note: Unless otherwise indicated the events and transactions outlined below have already been accounted for in the balances above. So unless it is indicated that NOT adjusted these events/transactions would have already been accounted for (and reflected in balances in the trial balance). However you may need to 'work' back to calculate the balances of some items (such as share