Chapter 3

Chapter 03 - Adjusting Accounts and Preparing Financial Statements
Chapter 3
Adjusting Accounts and Preparing Financial Statements
EXERCISES
Exercise 3-1 (20 minutes)

Balance Sheet Insurance Asset using Insurance Expense using
Accrual Cash Accrual Cash
Basis* Basis Basis** Basis
Dec. 31, 2013 $13,000 $0 2013 $ 5,000 $18,000
Dec. 31, 2014 7,000 0 2014 6,000 0
Dec. 31, 2015 1,000 0 2015 6,000 0
Dec. 31, 2016 0 0 2016 1,000 0
Total $18,000 $18,000
Explanations:
*
Accrual asset balance equals months left in the policy x $500 per month (monthly
cost is computed as $18,000 / 36 months).
Months Left Balance
12/31/2013... 26 $13,000
12/31/2014... 14 7,000
12/31/2015... 2 1,000
12/31/2016... 0 0
**
Accrual insurance expense equals months covered in the year x $500 per month.
Months Covered Expense
2013 10 $ 5,000
2014 12 6,000
2015 12 6,000
2016 2 1,000
$18,000
3-129
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
1. E 4. D
2. C 5. A
3. F 6. B
a. Adjusting entry:
2015
Dec. 31 Wages Expense 1,250
Wages Payable 1,250
To record accrued wages for one day.
(5 workers x $250)
b. Payday entry:
2016
Jan. 4 Wages Expense 3,750
Wages Payable 1,250
Cash 5,000
To record accrued and current wages.
Wages expense = 5 workers x 3 days x $250
Cash = 5 workers x 4 days x $250
3-130
Education.
a. Supplies expense for current year: $2,550

b. Supplies available – current year-end: $6,500
c. Supplies purchased in current year: $8,490
d. Supplies available – prior year end: $2,288
Proof:
(a) (b) (c) (d)
Supplies available – prior year-end $ 400 $1,200 $ 1,260 $2,288
Supplies purchased in current year 2,800 6,500 8,490 3,000
Total supplies available 3,200 7,700 9,750 5,288
Supplies available – current year-end (650) (6,500) (1,350) (700)
Supplies expense for current year $2,550 $1,200 $ 8,400 $4,588
3-131
Education.
a.
Apr. 30 Legal Fees Expense............................................ 3,500
Legal Fees Payable..................................... 3,500
To record accrued legal fees.
May 12 Legal Fees Payable............................................. 3,500

Cash.............................................................. 3,500
To pay accrued legal fees.
b.
Apr. 30 Interest Expense................................................. 3,000
Interest Payable........................................... 3,000
To record accrued interest expense
($9,000 monthly interest x 10/30).
May 20 Interest Payable................................................... 3,000

Interest Expense*................................................ 6,000
Cash.............................................................. 9,000
To record payment of accrued and current
interest. *($9,000 monthly interest x 20/30)
c.
Apr. 30 Salaries Expense................................................. 4,000
Salaries Payable.......................................... 4,000
To record accrued salaries ($10,000 x 2/5 week).
May 3 Salaries Payable.................................................. 4,000

Salaries Expense*............................................... 6,000
Cash.............................................................. 10,000
To record payment of accrued and current
salaries. *($10,000 weekly salaries x 3/5 week)
3-132
Education.
a. Depreciation Expense—Equipment 18,000

Accumulated Depreciation—Equipment 18,000
To record depreciation expense for the year.
b. Insurance Expense 4,900

Prepaid Insurance* 4,900
To record insurance coverage that expired
($6,000 - $1,100).
c. Office Supplies Expense 3,880

Office Supplies** 3,880
To record office supplies used ($700 + $3,480 - $300).
d. Unearned Fee Revenue 10,000

Fee Revenue 10,000
To record earned portion of fee received in advance
($15,000 x 2/3).
e. Insurance Expense 5,800

Prepaid Insurance 5,800
To record insurance coverage that expired.
f. Wages Expense 3,200

Wages Payable 3,200
To record wages accrued but not yet paid.
Notes:
Prepaid Insurance* Office Supplies**
Bal. Bal. 6,000 Beg. Bal. 700
Purch. 3,480
? Used ? Used
End. Bal. 1,100 End. Bal. 300
3-133
Education.
a. Unearned Fee Revenue 5,000

Fee Revenue 5,000
To record earned portion of fee received in advance
($15,000 x 1/3).
b. Wages Expense 8,000

Wages Payable 8,000
To record wages accrued but not yet paid.
c. Depreciation Expense—Equipment 18,000

To record depreciation expense for the year.
d. Office Supplies Expense 5,000

Office Supplies* 5,000
To record office supplies used ($240 + $5,200 - $440).
e. Insurance Expense 2,800

Prepaid Insurance† 2,800
To record insurance coverage expired ($4,000 - $1,200).
f. Interest Receivable 1,050

Interest Revenue 1,050
To record interest earned but not yet received.
g. Interest Expense 2,500

Interest Payable 2,500
To record interest incurred but not yet paid.
Notes:
Prepaid Insurance† Office Supplies*

Beg. Bal. 4,000 Beg. Bal. 240
Purch. 5,200
? Used ? Used
End. Bal. 1,200 End. Bal. 440
3-134
Education.
Dec. 31 Accounts Receivable.............................................. 2,100

Fees Earned..................................................... 2,100
To record earned but unbilled fees (30% x $7,000).
31 Unearned Fees........................................................ 4,900

Fees Earned..................................................... 4,900
To record earned fees collected in advance
(70% x $7,000).
31 Depreciation Expense—Computers...................... 1,600

Accumulated Depreciation-Computers......... 1,600
To record depreciation on computers.
31 Depreciation Expense—Office Furniture............... 1,850

Accumulated Depreciation—Office Furniture.... 1,850
To record depreciation on office furniture.
31 Salaries Expense.................................................... 2,250

Salaries Payable.............................................. 2,250
To record accrued salaries.
31 Insurance Expense.................................................. 1,400

Prepaid Insurance........................................... 1,400
To record expired prepaid insurance.
31 Office Supplies Expense......................................... 580

Office Supplies................................................ 580
To record use of office supplies.
31 Utilities Expense...................................................... 90
Utilities Payable............................................... 90
To record incurred and unpaid utility costs.
3-135
Education.
adidas AG
Balance Sheet
December 31, 2013
(Euros in millions)
Assets
Noncurrent assets
Intangible assets.................................................... € 148
Tangible and other assets..................................... 304
Other noncurrent assets...................................... 3,476
Total noncurrent assets........................................ 3,928
Current assets
Other current assets.............................................. 73
Inventories.............................................................. 29
Receivables and other assets............................... 1,928
Cash and cash equivalents................................... 736
Total current assets............................................... 2,766
Total assets.............................................................. € 6,694
Equity
Total equity............................................................... € 2,489
Liabilities
Total noncurrent liabilities...................................... 3,411
Total current liabilities............................................. 794
Total liabilities.......................................................... 4,205
Total equity and liabilities....................................... € 6,694
3-136
Education.
PROBLEM SET A
Problem 3-1A (10 minutes)
1. E 5. C 9. D
2. I 6. H 10. A
3. B 7. E 11. D
4. G 8. F 12. G
Part 1
Adjustment (a)
Dec. 31 Office Supplies Expense................................ 14,846
Office Supplies......................................... 14,846
To record cost of supplies used
($4,000 + $13,400 - $2,554).
Adjustment (b)
31 Insurance Expense.......................................... 7,120
Prepaid Insurance.................................... 7,120
To record annual insurance coverage cost.
Months Active
Policy Cost per Month in 2015 2015 Cost
A $600 ($14,400/24 mo.) 3 $ 1,800
B 360 ($12,960/36 mo.) 12 4,320
C 200 ($ 2,400 /12 mo.) 5 1,000
Total $ 7,120
Adjustment (c)
31 Salaries Expense............................................. 3,920
Salaries Payable...................................... 3,920
To record accrued but unpaid wages
(2 days x $1,960).
3-137
Education.
Problem 3-2A −concluded
Adjustment (d)
Dec. 31 Depreciation Expense—Building................... 30,500
Accumulated Depreciation—Building. . . 30,500
To record annual depreciation expense
[($960,000 -$45,000) / 30 years = $30,500]
Adjustment (e)
31 Rent Receivable............................................ 3,000
Rent Earned........................................... 3,000
To record earned but unpaid Dec. rent.
Adjustment (f)
31 Unearned Rent.............................................. 5,600

Rent Earned........................................... 5,600
To record the amount of rent earned for
November and December (2 x $2,800).
Part 2
Cash Payment for (c)
Jan. 6 Salaries Payable........................................... 3,920

Salaries Expense*......................................... 5,880
Cash........................................................ 9,800
To record payment of accrued and
current salaries. *(3 days x $1,960)
Cash Payment for (e)

15 Cash............................................................... 6,000
Rent Receivable..................................... 3,000
.................................................................Rent Earned
3,000
To record past due rent for two months.
3-138
Education.

Parts 1 and 2
Cash Equipment
Unadj. Bal. 34,000 Unadj. Bal. 80,000
Accumulated Depreciation—
Accounts Receivable Equipment
Unadj. Bal. 0 Unadj. Bal. 15,000
(f) 7,500 (c) 13,200
Adj. Bal. 7,500 Adj. Bal. 28,200
Teaching Supplies Accounts Payable

Unadj. Bal. 8,000 Bal. 26,000
(b) 5,200
Adj. Bal. 2,800 Salaries Payable
Unadj. Bal. 0
Prepaid Insurance (g) 400
Unadj. Bal. 12,000 Adj. Bal. 400
(a) 2,400
Adj. Bal. 9,600 Unearned Training Fees
Unadj. Bal. 12,500
Prepaid Rent (e) 5,000
Unadj. Bal. 3,000 Adj. Bal. 7,500
(h) 3,000
Adj. Bal. 0 T. Wells, Capital
Bal. 90,000
Professional Library
Bal. 35,000 T. Wells, Withdrawals
Bal. 50,000
Accumulated Depreciation—
Professional Library
Unadj. Bal. 10,000
(d) 7,200
Adj. Bal. 17,200
3-139
Education.
Problem 3-3A (Continued)
Tuition Fees Earned Rent Expense

Unadj. Bal. 123,900 Unadj. Bal. 33,000
(f) 7,500 (h) 3,000
Adj. Bal. 131,400 Adj. Bal. 36,000
Training Fees Earned Teaching Supplies Expense

Unadj. Bal. 40,000 Unadj. 0
Bal.
(e) 5,000 (b) 5,200
Adj. Bal. 45,000 Adj. Bal. 5,200
Depreciation Expense—
Professional Library Advertising Expense
Unadj. Bal. 0 Bal. 6,000
(d) 7,200
Adj. Bal. 7,200
Depreciation Expense—
Equipment Utilities Expense
Unadj. Bal. 0 Bal. 6,400
(c) 13,200
Adj. Bal. 13,200
Salaries Expense
Unadj. Bal. 50,000
(g) 400
Adj. Bal. 50,400
Insurance Expense
Unadj. Bal. 0
(a) 2,400
Adj. Bal. 2,400
3-140
Education.

Part 2
Adjustment (a)
Dec. 31 Insurance Expense 2,400
Prepaid Insurance 2,400
To record the insurance expired.
Adjustment (b)
31 Teaching Supplies Expense 5,200
Teaching Supplies 5,200
To record supplies used ($8,000 - $2,800).
Adjustment (c)
31 Depreciation Expense—Equipment 13,200
To record equipment depreciation.
Adjustment (d)
31 Depreciation Expense—Profess. Library 7,200
Accumul. Depreciation—Profess. Library 7,200
To record professional library depreciation.
Adjustment (e)
31 Unearned Training Fees 5,000
Training Fees Earned 5,000
To record 2 months’ training fees earned
that were collected in advance.
Adjustment (f)
31 Accounts Receivable 7,500
Tuition Fees Earned 7,500
To record tuition earned
($3,000 x 2 1/2 months).
Adjustment (g)
31 Salaries Expense 400
Salaries Payable 400
To record accrued salaries
(2 days x $100 x 2 employees).
Adjustment (h)
31 Rent Expense 3,000
Prepaid Rent 3,000
To record expiration of prepaid rent.
3-141
Education.

Part 3
WELLS TECHNICAL INSTITUTE
Adjusted Trial Balance
December 31, 2015
Debit Credit
Cash $ 34,000
Accounts receivable 7,500
Teaching supplies 2,800
Prepaid insurance 9,600
Prepaid rent 0
Professional library 35,000
Accumulated depreciation—Professional library $ 17,200
Equipment 80,000
Accumulated depreciation—Equipment 28,200
Accounts payable 26,000
Salaries payable 400
Unearned training fees 7,500
T. Wells, Capital 90,000
T. Wells, Withdrawals 50,000
Tuition fees earned 131,400
Training fees earned 45,000
Depreciation expense—Professional library 7,200
Depreciation expense—Equipment 13,200
Salaries expense 50,400
Insurance expense 2,400
Rent expense 36,000
Teaching supplies expense 5,200
Advertising expense 6,000
Utilities expense 6,400 _______
Totals $345,700 $345,700
3-142
Education.

Part 4
Income Statement
For Year Ended December 31, 2015
Revenues
Tuition fees earned............................................ $131,400
Training fees earned.......................................... 45,000
Total revenues.................................................... $176,400
Expenses
Depreciation expense—Professional library... 7,200
Depreciation expense—Equipment.................. 13,200
Salaries expense................................................ 50,400
Insurance expense............................................. 2,400
Rent expense...................................................... 36,000
Teaching supplies expense............................... 5,200
Advertising expense.......................................... 6,000
Utilities expense................................................. 6,400
Total expenses................................................... 126,800
Net income............................................................ $ 49,600

Statement of Owner’s Equity
T. Wells, Capital, December 31, 2014.................................. $ 90,000

Plus: Net income.................................................................. 49,600
139,600
Less: Withdrawals by owner............................................... 50,000
T. Wells, Capital, December 31, 2015.................................. $ 89,600
3-143
Education.
Problem 3-3A (Concluded)

Balance Sheet
December 31, 2015
Assets
Cash................................................................................. $ 34,000
Accounts receivable...................................................... 7,500
Teaching supplies.......................................................... 2,800
Prepaid insurance.......................................................... 9,600
Professional library........................................................ $35,000
Accumulated depreciation—Professional library....... (17,200) 17,800
Equipment....................................................................... 80,000
Accumulated depreciation—Equipment...................... (28,200) 51,800
Total assets..................................................................... $123,500
Liabilities
Accounts payable........................................................... $ 26,000
Salaries payable............................................................. 400
Unearned training fees.................................................. 7,500
Total liabilities................................................................ 33,900
Equity
T. Wells, Capital.............................................................. 89,600
Total liabilities and equity............................................. $123,500
3-144
Education.
Problem 3-4A (45 minutes) — Part 1

Unadjusted Adjusted
Account Trial Balance Adjustments Trial Balance
Cash $ 34,000 $ 34,000
Accounts receivable 14,000 (a) 8,000 22,000
Office supplies 16,000 (b) 14,000 2,000
Prepaid insurance 8,540 (c) 5,580 2,960
Office equipment 84,000 84,000
Accumulated depreciation
—Office equipment $ 14,000 (d) 6,000 $ 20,000
Accounts payable 9,100 (e) 900 10,000
Interest payable (f) 1,000 1,000
Salaries payable (g) 7,000 7,000
Unearned consulting fees 18,000 (h) 3,000 15,000
Long-term notes payable 52,000 52,000
J. Logan, Capital 40,000 40,000
J. Logan, Withdrawals 5,000 5,000
Consulting fees (a) 8,000
earned 123,240 (h) 3,000 134,240
Depreciation expense—
Office equipment (d) 6,000 6,000
Salaries expense 67,000 (g) 7,000 74,000
Interest expense 1,200 (f) 1,000 2,200
Insurance expense (c) 5,580 5,580
Rent expense 14,500 14,500
Office supplies expense (b) 14,000 14,000
Advertising expense 12,100 _______ (e) 900 ______ 13,000 _______
Totals $256,340 $256,340 $45,480 $45,480 $279,240 $279,240
Adjustment description
(a) Earned but uncollected revenues.
(b) Cost of office supplies used.
(c) Cost of expired insurance coverage.
(d) Depreciation expense on office equipment.
(e) Incurred but unpaid advertising expense.
(f) Incurred but unpaid interest expense.
(g) Incurred but unpaid salaries expense.
(h) Earned revenues previously received in advance.
3-145
Education.
Part 2
JKL COMPANY
Income Statement
For Year Ended July 31, 2015
Revenues
Consulting fees earned ................................ $134,240
Expenses
Depreciation expense—Office equipment. . $ 6,000
Salaries expense .......................................... 74,000
Interest expense ........................................... 2,200
Insurance expense ....................................... 5,580
Rent expense ................................................ 14,500
Office supplies expense .............................. 14,000
Advertising expense .................................... 13,000
Total expenses.............................................. 129,280
Net income....................................................... $ 4,960
JKL COMPANY
Statement of Owner’s Equity
For Year Ended July 31, 2015
J. Logan, Capital, July 31, 2014..................... $40,000

Plus: Net income............................................. 4,960
44,960
Less: Owner withdrawals............................... 5,000
J. Logan, Capital, July 31, 2015..................... $39,960
3-146
Education.
Part 2
JKL COMPANY
Balance Sheet
July 31, 2015
Assets
Cash $ 34,000
Office supplies 2,000
Prepaid insurance 2,960
Office equipment $84,000
Accumulated depreciation—Office equipment (20,000) 64,000
Total assets $124,960
Liabilities
Accounts payable $ 10,000
Interest payable 1,000
Salaries payable 7,000
Unearned consulting fees 15,000
Long-term notes payable 52,000
Total liabilities 85,000
Equity
J. Logan, Capital 39,960
Total liabilities and equity $124,960
3-147
Education.
Part 1
CHIARA COMPANY
Income Statement
Revenues
Fees earned.............................................. $484,000
Interest earned.......................................... 24,000
Total revenues.......................................... $508,000
Expenses
Depreciation expense—Automobiles..... 26,000
Depreciation expense—Equipment........ 18,000
Salaries expense...................................... 188,000
Wages expense........................................ 40,000
Interest expense....................................... 32,000
Office supplies expense.......................... 34,000
Advertising expense................................ 58,000
Repairs expense—Automobiles............. 24,800
Total expenses......................................... 420,800
Net income.................................................. $ 87,200
CHIARA COMPANY
Statement of Owner's Equity
R. Chiara, Capital, December 31, 2014.............. $255,800

Plus: Net income................................................ 87,200
343,000
Less: Withdrawals by owner............................. 46,000
R. Chiara, Capital, December 31, 2015............. $297,000
3-148
Education.
CHIARA COMPANY
Balance Sheet
December 31, 2015
Assets
Cash $ 30,000
Interest receivable 18,000
Notes receivable (due in 90 days) 168,000
Office supplies 16,000
Automobiles $168,000
Accumulated depreciation—Automobiles (50,000) 118,000
Equipment 138,000
Accumulated depreciation—Equipment (18,000) 120,000
Land 78,000
Total assets $600,000
Liabilities
Accounts payable $ 96,000
Interest payable 20,000
Salaries payable 19,000
Unearned fees 30,000
Long-term notes payable 138,000
Total liabilities 303,000
Equity
R. Chiara, Capital 297,000
Total liabilities and equity $600,000
Part 2
Profit margin = $87,200 / $508,000 = 17.2%
3-149
Education.
Problem 3-6AA (40 minutes)

Part 1
Assume prepaid expenses are recorded as assets and unearned revenues as liabilities.
Nov. 1 Prepaid Advertising ....................................... 1,800

Cash.......................................................... 1,800
Paid for future advertising.
1 Prepaid Insurance........................................... 2,460

Cash.......................................................... 2,460
Paid insurance for one year.
30 Cash.................................................................. 3,600
Unearned Service Fees........................... 3,600
Received fees in advance.
Dec. 1 Prepaid Consulting Fees ............................... 3,000

Cash.......................................................... 3,000
Paid for future consulting.
15 Cash.................................................................. 7,950
31 Advertising Expense....................................... 600

Prepaid Advertising ................................ 600
To adjust prepaid advertising
($1,800 - $1,200).
31 Insurance Expense.......................................... 410

Prepaid Insurance.................................... 410
To adjust prepaid insurance ($2,460 x 2/12).
31 Unearned Service Fees .................................. 2,100

Service Fees Earned................................ 2,100
To adjust unearned service fees
($3,600 - $1,500).
31 Consulting Fees Expense .............................. 1,000

Prepaid Consulting Fees......................... 1,000
To adjust prepaid consulting fees ($3,000 x 1/3).
31 Unearned Service Fees................................... 3,300

To adjust unearned service fees.
3-150
Education.
Problem 3-6AA (Continued)

Part 2
Assume prepaid expenses are recorded as expenses and unearned revenues as revenues.
Nov. 1 Advertising Expense....................................... 1,800

Cash.......................................................... 1,800
Paid for future advertising.
1 Insurance Expense.......................................... 2,460

Cash.......................................................... 2,460
Paid insurance for one year.
30 Cash.................................................................. 3,600
Dec. 1 Consulting Fees Expense............................... 3,000

Cash.......................................................... 3,000
Paid for future consulting.
15 Cash.................................................................. 7,950
31 Prepaid Advertising........................................ 1,200

Advertising Expense............................... 1,200
To adjust for prepaid advertising.
31 Prepaid Insurance........................................... 2,050

Insurance Expense.................................. 2,050
To adjust for prepaid insurance.
($2,460 x 10/12)
31 Service Fees Earned....................................... 1,500

To adjust for unearned service fees.
31 Prepaid Consulting Fees................................ 2,000

Consulting Fees Expense....................... 2,000
To adjust for prepaid consulting fees.
($3,000 x 2/3)
31 Service Fees Earned....................................... 4,650

To adjust for unearned service fees.
($7,950 - $3,300)
3-151
Education.

Chapter 3

Uploaded by

Copyright:

Available Formats

Chapter 3

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 3

Uploaded by

Copyright:

Available Formats

Chapter 03 - Adjusting Accounts and Preparing Financial Statements

Exercise 3-1 (20 minutes)

Dec. 31, 2013 $13,000 $0 2013 $ 5,000 $18,000

Dec. 31, 2014 7,000 0 2014 6,000 0

Dec. 31, 2015 1,000 0 2015 6,000 0

Dec. 31, 2016 0 0 2016 1,000 0

Total $18,000 $18,000

Exercise 3-2 (10 minutes)

Exercise 3-3 (15 minutes)

Exercise 3-4 (15 minutes)

a. Supplies expense for current year: $2,550

Exercise 3-5 (25 minutes)

May 12 Legal Fees Payable............................................. 3,500

May 20 Interest Payable................................................... 3,000

May 3 Salaries Payable.................................................. 4,000

Exercise 3-6 (25 minutes)

a. Depreciation Expense—Equipment 18,000

b. Insurance Expense 4,900

c. Office Supplies Expense 3,880

d. Unearned Fee Revenue 10,000

e. Insurance Expense 5,800

f. Wages Expense 3,200

Exercise 3-7 (30 minutes)

a. Unearned Fee Revenue 5,000

b. Wages Expense 8,000

c. Depreciation Expense—Equipment 18,000

d. Office Supplies Expense 5,000

e. Insurance Expense 2,800

f. Interest Receivable 1,050

g. Interest Expense 2,500

Prepaid Insurance† Office Supplies*

Exercise 3-8 (25 minutes)

Dec. 31 Accounts Receivable.............................................. 2,100

31 Unearned Fees........................................................ 4,900

31 Depreciation Expense—Computers...................... 1,600

31 Depreciation Expense—Office Furniture............... 1,850

31 Salaries Expense.................................................... 2,250

31 Insurance Expense.................................................. 1,400

31 Office Supplies Expense......................................... 580

Exercise 3-9 (20 minutes)

Problem 3-2A (35 minutes)

Problem 3-2A −concluded

31 Unearned Rent.............................................. 5,600

Cash Payment for (c)

Jan. 6 Salaries Payable........................................... 3,920

Cash Payment for (e)

Problem 3-3A (90 minutes)

Teaching Supplies Accounts Payable

Problem 3-3A (Continued)

Tuition Fees Earned Rent Expense

Training Fees Earned Teaching Supplies Expense

Problem 3-3A (Continued)

Problem 3-3A (Continued)

Problem 3-3A (Continued)

WELLS TECHNICAL INSTITUTE

T. Wells, Capital, December 31, 2014.................................. $ 90,000

Problem 3-3A (Concluded)

WELLS TECHNICAL INSTITUTE

Problem 3-4A (45 minutes) — Part 1

Problem 3-4A (Continued)