Accounting Problem - Kelly Consulting
Comprehensive Problem 1 Part 1:
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The chart of accounts for Kelly Consulting is shown below:
|
Account Number |
Account |
|
11 |
Cash |
|
12 |
Accounts Receivable |
|
14 |
Supplies |
|
15 |
Prepaid Rent |
|
16 |
Prepaid Insurance |
|
18 |
Office Equipment |
|
19 |
Accumulated Depreciation |
|
21 |
Accounts Payable |
|
22 |
Salaries Payable |
|
23 |
Unearned Fees |
|
31 |
Common Stock |
|
32 |
Retained Earnings |
|
33 |
Dividends |
|
41 |
Fees Earned |
|
51 |
Salary Expense |
|
52 |
Rent Expense |
|
53 |
Supplies Expense |
|
54 |
Depreciation Expense |
|
55 |
Insurance Expense |
|
59 |
Miscellaneous Expense |
The post-closing trial balance as of April 30, 20Y8, is shown below:
|
Kelly Consulting Post-Closing Trial Balance April 30, 20Y8 |
|||
|
Account |
Account No. |
Debit |
Credit |
|
Cash |
11 |
22,100 |
|
|
Accounts Receivable |
12 |
3,400 |
|
|
Supplies |
14 |
1,350 |
|
|
Prepaid Rent |
15 |
3,200 |
|
|
Prepaid Insurance |
16 |
1,500 |
|
|
Office Equipment |
18 |
14,500 |
|
|
Accumulated Depreciation |
19 |
|
330 |
|
Accounts Payable |
21 |
|
800 |
|
Salaries Payable |
22 |
|
120 |
|
Unearned Fees |
23 |
|
2,500 |
|
Common Stock |
31 |
|
30,000 |
|
Retained Earnings |
32 |
|
12,300 |
|
Total |
|
46,050 |
46,050 |
Required:
Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) If an amount box does not require an entry, leave it blank.
May 3: Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 2 |
fill in the blank 3 |
|
|
|
fill in the blank 5 |
fill in the blank 6 |
May 5: Received cash from clients on account, $2,450.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 8 |
fill in the blank 9 |
|
|
|
fill in the blank 11 |
fill in the blank 12 |
May 9: Paid cash for a newspaper advertisement, $225.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 14 |
fill in the blank 15 |
|
|
|
fill in the blank 17 |
fill in the blank 18 |
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 20 |
fill in the blank 21 |
|
|
|
fill in the blank 23 |
fill in the blank 24 |
May 15: Recorded services provided on account for the period May 1–15, $9,180.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 26 |
fill in the blank 27 |
|
|
|
fill in the blank 29 |
fill in the blank 30 |
May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 32 |
fill in the blank 33 |
|
|
|
fill in the blank 35 |
fill in the blank 36 |
|
|
|
fill in the blank 38 |
fill in the blank 39 |
May 17: Recorded cash from cash clients for fees earned during the period May 1–16, $8,360.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 41 |
fill in the blank 42 |
|
|
|
fill in the blank 44 |
fill in the blank 45 |
May 20: Purchased supplies on account, $735.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 47 |
fill in the blank 48 |
|
|
|
fill in the blank 50 |
fill in the blank 51 |
May 21: Recorded services provided on account for the period May 16–20, $4,820.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 53 |
fill in the blank 54 |
|
|
|
fill in the blank 56 |
fill in the blank 57 |
May 25: Recorded cash from cash clients for fees earned for the period May 17–23, $7,900.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 59 |
fill in the blank 60 |
|
|
|
fill in the blank 62 |
fill in the blank 63 |
May 27: Received cash from clients on account, $9,520.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 65 |
fill in the blank 66 |
|
|
|
fill in the blank 68 |
fill in the blank 69 |
May 28: Paid part-time receptionist for two weeks' salary, $750.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 71 |
fill in the blank 72 |
|
|
|
fill in the blank 74 |
fill in the blank 75 |
May 30: Paid telephone bill for May, $260.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 77 |
fill in the blank 78 |
|
|
|
fill in the blank 80 |
fill in the blank 81 |
May 31: Paid electricity bill for May, $810.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 83 |
fill in the blank 84 |
|
|
|
fill in the blank 86 |
fill in the blank 87 |
May 31: Recorded cash from cash clients for fees earned for the period May 26–31, $3,300.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 89 |
fill in the blank 90 |
|
|
|
fill in the blank 92 |
fill in the blank 93 |
May 31: Recorded services provided on account for the remainder of May, $2,650.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 95 |
fill in the blank 96 |
|
|
|
fill in the blank 98 |
fill in the blank 99 |
May 31: Paid dividends, $10,500.
|
Description |
Post. Ref. |
Debit |
Credit |
|
|
|
fill in the blank 101 |
fill in the blank 102 |
|
|
|
fill in the blank 104 |
fill in the blank 105 |
Part 2 and Part 3:
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete part 1 before completing parts 2 and 3.
Part 2: Using the attached spreadsheet , post the journal entries from part 1 to a ledger of four-column accounts.
Part 3: Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank.
|
Kelly Consulting Unadjusted Trial Balance May 31, 20Y8 |
||
|
Account Title |
Debit Balances |
Credit Balances |
|
|
fill in the blank 2 |
fill in the blank 3 |
|
|
fill in the blank 5 |
fill in the blank 6 |
|
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fill in the blank 8 |
fill in the blank 9 |
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fill in the blank 11 |
fill in the blank 12 |
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fill in the blank 14 |
fill in the blank 15 |
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fill in the blank 17 |
fill in the blank 18 |
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fill in the blank 20 |
fill in the blank 21 |
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fill in the blank 23 |
fill in the blank 24 |
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fill in the blank 26 |
fill in the blank 27 |
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fill in the blank 29 |
fill in the blank 30 |
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fill in the blank 32 |
fill in the blank 33 |
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fill in the blank 35 |
fill in the blank 36 |
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fill in the blank 38 |
fill in the blank 39 |
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fill in the blank 41 |
fill in the blank 42 |
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fill in the blank 44 |
fill in the blank 45 |
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fill in the blank 47 |
fill in the blank 48 |
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fill in the blank 50 |
fill in the blank 51 |
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fill in the blank 53 |
fill in the blank 54 |
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|
fill in the blank 56 |
fill in the blank 57 |
|
|
fill in the blank 59 |
fill in the blank 60 |
|
Total |
fill in the blank 61 |
fill in the blank 62 |
Part 4 and Part 6:
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2 and 3 before completing parts 4 and 6. Please note that part 5 is optional.
Part 4: At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).
a. Insurance expired during May is $275. b. Supplies on hand on May 31 are $715. c. Depreciation of office equipment for May is $330. d. Accrued receptionist salary on May 31 is $325. e. Rent expired during May is $1,600. f. Unearned fees on May 31 are $3,210.
Part 6: Journalize the adjusting entries. Then, post the entries to the attached spreadsheet from part 2.
a. Insurance expired during May is $275.
|
Date |
Account Name |
Post. Ref. |
Debit |
Credit |
|
May 31 |
|
|
fill in the blank 2 |
fill in the blank 3 |
|
|
|
|
fill in the blank 5 |
fill in the blank 6 |
b. Supplies on hand on May 31 are $715.
|
Date |
Account Name |
Post. Ref. |
Debit |
Credit |
|
May 31 |
|
|
fill in the blank 8 |
fill in the blank 9 |
|
|
|
|
fill in the blank 11 |
fill in the blank 12 |
c. Depreciation of office equipment for May is $330.
|
Date |
Account Name |
Post. Ref. |
Debit |
Credit |
|
May 31 |
|
|
fill in the blank 14 |
fill in the blank 15 |
|
|
|
|
fill in the blank 17 |
fill in the blank 18 |
d. Accrued receptionist salary on May 31 is $325.
|
Date |
Account Name |
Post. Ref. |
Debit |
Credit |
|
May 31 |
|
|
fill in the blank 20 |
fill in the blank 21 |
|
|
|
|
fill in the blank 23 |
fill in the blank 24 |
e. Rent expired during May is $1,600.
|
Date |
Account Name |
Post. Ref. |
Debit |
Credit |
|
May 31 |
|
|
fill in the blank 26 |
fill in the blank 27 |
|
|
|
|
fill in the blank 29 |
fill in the blank 30 |
f. Unearned fees on May 31 are $3,210.
|
Date |
Account Name |
Post. Ref. |
Debit |
Credit |
|
May 31 |
|
|
fill in the blank 32 |
fill in the blank 33 |
|
|
|
|
fill in the blank 35 |
fill in the blank 36 |
Part 5 is optional.
Part 7:
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2, 3, 4, and 6 before completing part 7. Part 5 is optional.
Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.
|
Kelly Consulting Adjusted Trial Balance May 31, 20Y8 |
||
|
Account Title |
Debit Balances |
Credit Balances |
|
|
fill in the blank 2 |
fill in the blank 3 |
|
|
fill in the blank 5 |
fill in the blank 6 |
|
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fill in the blank 8 |
fill in the blank 9 |
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fill in the blank 11 |
fill in the blank 12 |
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fill in the blank 14 |
fill in the blank 15 |
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fill in the blank 17 |
fill in the blank 18 |
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fill in the blank 20 |
fill in the blank 21 |
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fill in the blank 23 |
fill in the blank 24 |
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fill in the blank 26 |
fill in the blank 27 |
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fill in the blank 29 |
fill in the blank 30 |
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fill in the blank 32 |
fill in the blank 33 |
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fill in the blank 35 |
fill in the blank 36 |
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fill in the blank 38 |
fill in the blank 39 |
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fill in the blank 41 |
fill in the blank 42 |
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fill in the blank 44 |
fill in the blank 45 |
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fill in the blank 47 |
fill in the blank 48 |
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fill in the blank 50 |
fill in the blank 51 |
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fill in the blank 53 |
fill in the blank 54 |
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fill in the blank 56 |
fill in the blank 57 |
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|
fill in the blank 59 |
fill in the blank 60 |
|
Total |
fill in the blank 61 |
fill in the blank 62 |
1. Part 8:
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.
NOTE: You must complete parts 1, 2, 3, 4, 6 and 7 before completing part 8. Part 5 is optional.
Prepare an income statement.
|
Kelly Consulting Income Statement For the Month Ended May 31, 20Y8 |
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|
Line Item Description |
Amount |
Amount |
|
|
|
$fill in the blank 2 |
|
Expenses: |
|
|
|
|
$fill in the blank 4 |
|
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fill in the blank 6 |
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fill in the blank 8 |
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fill in the blank 10 |
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fill in the blank 12 |
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fill in the blank 14 |
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fill in the blank 16 |
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$fill in the blank 18 |
Prepare a statement of stockholders’ equity. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.
|
Kelly Consulting Statement of Stockholders’ Equity For the Month Ended May 31, 20Y8 |
|||
|
Line Item Description |
Common Stock |
Retained Earnings |
Total |
|
|
$fill in the blank 20 |
$fill in the blank 21 |
$fill in the blank 22 |
|
|
fill in the blank 24 |
fill in the blank 25 |
fill in the blank 26 |
|
|
fill in the blank 28 |
fill in the blank 29 |
fill in the blank 30 |
|
|
$fill in the blank 32 |
$fill in the blank 33 |
$fill in the blank 34 |
Prepare a balance sheet.
|
Kelly Consulting Balance Sheet May 31, 20Y8 |
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|
Line Item Description |
Amount |
Amount |
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
|
$fill in the blank 36 |
|
|
|
|
fill in the blank 38 |
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|
|
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fill in the blank 40 |
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|
|
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fill in the blank 42 |
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fill in the blank 44 |
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|
Total current assets |
|
$fill in the blank 45 |
|
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Property, plant, and equipment: |
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|
|
|
|
$fill in the blank 47 |
|
|
|
|
fill in the blank 49 |
|
|
|
Total property, plant, and equipment |
|
fill in the blank 50 |
|
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Total assets |
|
$fill in the blank 51 |
|
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Liabilities |
|
|
|
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Current liabilities: |
|
|
|
|
|
$fill in the blank 53 |
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|
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fill in the blank 55 |
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|
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fill in the blank 57 |
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Total liabilities |
|
$fill in the blank 58 |
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Stockholders’ Equity |
|
|
|
|
|
$fill in the blank 60 |
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|
|
|
fill in the blank 62 |
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Total stockholders’ equity |
|
fill in the blank 63 |
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Total liabilities and stockholders’ equity |
|
$fill in the blank 64 |
|
Part 9:
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.
Note: You must complete parts 1, 2, 3, 4, 6, 7 and 8 before completing part 9. Part 5 is optional.
Part 9: Prepare the closing entries below. Then, using the attached spreadsheet from part 2, post the entries to your general ledger. If an amount box does not require an entry, leave it blank.
|
Date |
Account Name |
Post. Ref. |
Debit |
Credit |
|
20Y8 |
Closing Entries |
|
|
|
|
May 31 |
|
fill in the blank 2 |
fill in the blank 3 |
fill in the blank 4 |
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fill in the blank 6 |
fill in the blank 7 |
fill in the blank 8 |
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fill in the blank 10 |
fill in the blank 11 |
fill in the blank 12 |
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fill in the blank 14 |
fill in the blank 15 |
fill in the blank 16 |
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fill in the blank 18 |
fill in the blank 19 |
fill in the blank 20 |
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fill in the blank 22 |
fill in the blank 23 |
fill in the blank 24 |
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fill in the blank 26 |
fill in the blank 27 |
fill in the blank 28 |
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fill in the blank 30 |
fill in the blank 31 |
fill in the blank 32 |
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May 31 |
|
fill in the blank 34 |
fill in the blank 35 |
fill in the blank 36 |
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|
|
fill in the blank 38 |
fill in the blank 39 |
fill in the blank 40 |
Part 10:
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.
Note: You must complete parts 1, 2, 3, 4, 6, 7, 8 and 9 before completing part 10. Part 5 is optional.
Prepare a post-closing trial balance. If an amount box does not require an entry, leave it blank.
|
Kelly Consulting Post-Closing Trial Balance May 31, 20Y8 |
||
|
Account Title |
Debit Balances |
Credit Balances |
|
|
fill in the blank 2 |
fill in the blank 3 |
|
|
fill in the blank 5 |
fill in the blank 6 |
|
|
fill in the blank 8 |
fill in the blank 9 |
|
|
fill in the blank 11 |
fill in the blank 12 |
|
|
fill in the blank 14 |
fill in the blank 15 |
|
|
fill in the blank 17 |
fill in the blank 18 |
|
|
fill in the blank 20 |
fill in the blank 21 |
|
|
fill in the blank 23 |
fill in the blank 24 |
|
|
fill in the blank 26 |
fill in the blank 27 |
|
|
fill in the blank 29 |
fill in the blank 30 |
|
|
fill in the blank 32 |
fill in the blank 33 |
|
|
fill in the blank 35 |
fill in the blank 36 |
|
Total |
fill in the blank 37 |
fill in the blank 38 |