3 Adjusting The Accounts

Learning Objectives
Explain the accrual basis of accounting and the
1 reasons for adjusting entries.

2 Prepare adjusting entries for deferrals.

3 Prepare adjusting entries for accruals.

Describe the nature and purpose of an adjusted

4 trial balance.
3-1
LEARNING Explain the accrual basis of accounting
OBJECTIVE
1 and the reasons for adjusting entries.

Accountants divide the economic life of a business into

artificial time periods (Time Period Assumption).

.....
Jan. Feb. Mar. Apr. Dec.

Generally a
Alternative Terminology
◆ month, The time period assumption
is also called the
◆ quarter, or
periodicity assumption.
◆ year.

3-2 LO 1
 Fiscal and Calendar Years

◆ Periode laporan bulanan dan triwulanan (quarterly)

disebut interim periods.

◆ Sebagian besar perusahaan harus menyajikan baik

laporan keuangan triwulanan (quarterly) dan tahunan
(annual).

◆ Fiscal Year = Accounting time period that is one year

in length.

◆ Calendar Year = January 1 to December 31.

3-3 LO 1
 Fiscal and Calendar Years

Question
The time period assumption states that:

a. revenue should be recognized in the accounting

period in which it is earned.

b. expenses should be matched with revenues.

c. the economic life of a business can be divided into

artificial time periods.
d. the fiscal year should correspond with the calendar
year.

3-4 LO 1
 Accrual- versus Cash-Basis Accounting

Accrual-Basis Accounting
◆ Transaksi dicatat pada periode terjadinya peristiwa
tersebut.

◆ Perusahaan mengakui pendapatan saat mereka

melakukan layanan (bukan saat mereka menerima
uang tunai).

◆ Beban diakui pada saat terjadinya (bukan pada saat

dibayar).

◆ Megikuti generally accepted accounting principles

(GAAP).

3-5 LO 1
 Accrual- versus Cash-Basis Accounting

Cash-Basis Accounting
◆ Pendapatan diakui pada saat kas diterima.

◆ Beban diakui pada saat pembayaran tunai.

◆ Akuntansi berbasis kas tidak sesuai dengan generally

accepted accounting principles (GAAP).

3-6 LO 1
 Recognizing Revenues and Expenses

REVENUE RECOGNITION PRINCIPLE

Mengakui pendapatan dalam
periode akuntansi di mana
kewajiban kinerja dipenuhi.

3-7 LO 1
 Recognizing Revenues and Expenses

EXPENSE RECOGNITION PRINCIPLE

Cocokkan biaya dengan
pendapatan pada periode ketika
perusahaan melakukan upaya
yang menghasilkan pendapatan
tersebut.
“Let the expenses
follow the revenues.”

3-8 LO 1
 Illustration 3-1
GAAP relationships in
revenue and expense
recognition

3-9 LO 1
 Recognizing Revenues and Expenses

Question
One of the following statements about the accrual basis of
accounting is false? That statement is:
a. Events that change a company’s financial statements are
recorded in the periods in which the events occur.
b. Revenue is recognized in the period in which the performance
obligation is satisfied.
c. The accrual basis of accounting is in accord with generally
accepted accounting principles.
d. Revenue is recorded only when cash is received, and
expenses are recorded only when cash is paid.

3-10 LO 1
3-11 LO 1
 The Need for Adjusting Entries

Adjusting Entries
◆ Memastikan bahwa prinsip pengakuan pendapatan dan
pengakuan beban diikuti.
◆ Diperlukan karena neraca saldo mungkin tidak berisi data
terbaru dan lengkap.
◆ Diperlukan setiap kali perusahaan menyusun laporan
keuangan.
◆ Akan mencakup satu akun laporan laba rugi dan satu akun
neraca.

3-12 LO 1
 The Need for Adjusting Entries

Question
Adjusting entries are made to ensure that:
a. expenses are recognized in the period in which
they are incurred.
b. revenues are recorded in the period in which
services are performed.
c. balance sheet and income statement accounts
have correct balances at the end of an accounting
period.
d. all of the above.

3-13 LO 1
 Types of Adjusting Entries
Illustration 3-2
Categories of adjusting entries

Deferrals Accruals

1. Prepaid Expenses. 1. Accrued Revenues.

Expenses paid in cash before Revenues for services
they are used or consumed. performed but not yet received
in cash or recorded.

2. Unearned Revenues. 2. Accrued Expenses.

Cash received before Expenses incurred but not yet
services are performed. paid in cash or recorded.

3-14 LO 1
 Types of Adjusting Entries
Trial Balance – Each account is analyzed to determine
whether it is complete and up-to-date.
Illustration 3-3

3-15 LO 1
 DO IT! 1 Timing Concepts

A list of concepts is provided in the left column below, with a description of the
concept in the right column below. There are more descriptions provided than
concepts. Match the description of the concept to the concept.

1. ___
f Accrual-basis accounting. (a) Monthly and quarterly time periods.
2. ___ Calendar year. (b) Efforts (expenses) should be matched
e
with results (revenues).
3. ___
c Time period
(c) Accountants divide the economic life of
assumption.
b a business into artificial time periods.
4. ___ Expense recognition (d) Companies record revenues when they
principle. receive cash and record expenses when
they pay out cash.
(e) An accounting time period that starts on
January 1 and ends on December 31.
(f) Companies record transactions in the
period in which the events occur.
3-16 LO 1
 LEARNING
OBJECTIVE
2 Prepare adjusting entries for deferrals.

Deferrals are expenses or revenues yang diakui pada

tanggal setelah saat kas awalnya dipertukarkan. There are
two types:

◆ Prepaid expenses

◆ Unearned revenues

3-17 LO 2
 Prepaid Expenses

Pembayaran tunai, yang dicatat sebagai aset untuk

menunjukkan layanan atau manfaat yang akan diterima
perusahaan di masa depan.

Cash Payment BEFORE Expense Recorded

Prepayments often occur in regard to:

◆ insurance ◆ rent
◆ supplies ◆ equipment
◆ advertising ◆ buildings

3-18 LO 2
 Prepaid Expenses

◆ Kedaluwarsa baik dengan berlalunya waktu atau

melalui penggunaan.
◆ Adjusting entry:
► Increase (debit) to an expense account and
► Decrease (credit) to an asset account.
Illustration 3-4

3-19 LO 2
 Supplies

Illustration: Pioneer Advertising membeli

supplies seharga $ 2.500 pada tanggal 5
Oktober. Pioneer mencatat pembayaran
dengan meningkatkan (mendebit) aset
inventory. Akun ini menunjukkan saldo $
2.500 pada neraca saldo 31 Oktober.
Penghitungan inventory pada penutupan
bisnis pada tanggal 31 Oktober
menunjukkan bahwa supplies senilai $
1.000 masih ada ..
Oct. 31 Supplies Expense 1,500
Supplies 1,500

3-20 LO 2
 Supplies
Illustration 3-5

3-21 LO 2
 Insurance

Illustration: Pada tanggal 4 Oktober, Pioneer

Advertising membayar $ 600 untuk polis
asuransi kebakaran satu tahun.
Pertanggungan dimulai pada 1 Oktober.
Pioneer mencatat pembayaran dengan
meningkatkan (mendebit) Asuransi Prepaid
insurance. Akun ini menunjukkan saldo $ 600
dalam neraca saldo 31 Oktober. Asuransi $
50 ($ 600 ÷ 12) kedaluwarsa setiap bulan.

Oct. 31 Insurance Expense 50

Prepaid Insurance 50

3-22 LO 2
 Insurance
Illustration 3-6

3-23 LO 2
 Depreciation

◆ Bangunan, peralatan, dan kendaraan bermotor

(aset yang memberikan layanan selama
bertahun-tahun) dicatat sebagai aset, bukan
sebagai beban, pada tanggal perolehan.

◆ Penyusutan adalah proses mengalokasikan harga

perolehan aset ke beban selama masa manfaatnya.

◆ Penyusutan tidak mencoba melaporkan perubahan

aktual dalam nilai aset.

◆ Konsep alokasi, bukan konsep penilaian.

3-24 LO 2
 Depreciation

Illustration: For Pioneer Advertising,

asumsikan bahwa penyusutan equipmen
adalah $ 480 setahun, atau $ 40 per bulan.

Oct. 31

Depreciation expense 40
Accumulated depreciation 40

Accumulated Depreciation is called

a contra asset account.

3-25 LO 2
 Illustration 3-7

3-26 LO 2
 Depreciation

STATEMENT PRESENTATION
◆ Akumulasi Penyusutan adalah akun kontra aset
(kredit).
◆ Mengimbangi (offsetting) akun aset terkait di neraca.
◆ Nilai buku adalah perbedaan antara harga perolehan
aset yang dapat disusutkan dengan akumulasi
penyusutannya.
Illustration 3-8

3-27 LO 2
 Prepaid Expenses

Summary of the accounting for prepaid expenses.

Illustration 3-9
Accounting for prepaid expenses

3-28 LO 2
 Unearned Revenues

Penerimaan kas yang dicatat sebagai kewajiban karena

jasa belum dilakukan.

Cash Receipt BEFORE Revenue Recorded

Unearned revenues often occur in regard to:

◆ Rent ◆ Magazine subscriptions

◆ Airline tickets ◆ Customer deposits

3-29 LO 2
 Unearned Revenues

◆ Ayat jurnal penyesuaian dibuat untuk mencatat pendapatan

atas jasa yang dilakukan selama periode tersebut dan untuk
menunjukkan kewajiban yang tersisa pada akhir periode.

◆ Menghasilkan penurunan (debit) ke akun kewajiban dan

peningkatan (kredit) ke akun pendapatan.

Illustration 3-10

3-30 LO 2
 Unearned Revenues

Illustration: Pioneer Advertising menerima $

1.200 pada tanggal 2 Oktober dari R. Knox
untuk layanan periklanan yang diharapkan
akan selesai sebelum 31 Desember.
Pendapatan Jasa Diterima di Muka
menunjukkan saldo sebesar $ 1.200 dalam
saldo percobaan 31 Oktober. Analisis
menunjukkan bahwa perusahaan melakukan
layanan senilai $ 400 pada bulan Oktober.

Oct. 31 Unearned Service Revenue 400

Service Revenue 400

3-31 LO 2
 Unearned Revenues
Illustration 3-11

3-32 LO 2
 Unearned Revenues

Summary of the accounting for unearned revenues.

Illustration 3-12

3-33 LO 2
3-34 LO 2
 DO IT! 2 Adjusting Entries for Deferrals

The ledger of Hammond Company, on March 31, 2017, includes these

selected accounts before adjusting entries are prepared.
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $5,000
Unearned Service Revenue 9,200
An analysis of the accounts shows the following.
1. Insurance expires at the rate of $100 per month.
2. Supplies on hand total $800.
3. The equipment depreciates $200 a month.
4. During March, services were performed for one-half of the unearned
service revenue.
Prepare the adjusting entries for the month of March.

3-35 LO 2
 DO IT! 2 Adjusting Entries for Deferrals

The ledger of Hammond Company, on March 31, 2017, includes these

selected accounts before adjusting entries are prepared.
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $5,000
Unearned Service Revenue 9,200
Prepare the adjusting entries for the month of March.

1. Insurance expires at the rate of $100 per month.

Insurance Expense 100

Prepaid Insurance 100

3-36 LO 2
 DO IT! 2 Adjusting Entries for Deferrals

The ledger of Hammond Company, on March 31, 2017, includes these

selected accounts before adjusting entries are prepared.
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $5,000
Unearned Service Revenue 9,200
Prepare the adjusting entries for the month of March.

2. Supplies on hand total $800.

Supplies Expense 2,000

Supplies 2,000

3-37 LO 2
 DO IT! 2 Adjusting Entries for Deferrals

The ledger of Hammond Company, on March 31, 2017, includes these

selected accounts before adjusting entries are prepared.
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $5,000
Unearned Service Revenue 9,200
Prepare the adjusting entries for the month of March.

3. The equipment depreciates $200 a month.

Depreciation Expense 200

Accumulated Depreciation—Equipment 200

3-38 LO 2
 DO IT! 2 Adjusting Entries for Deferrals

The ledger of Hammond Company, on March 31, 2017, includes these

selected accounts before adjusting entries are prepared.
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $5,000
Unearned Service Revenue 9,200
Prepare the adjusting entries for the month of March.

4. During March, services were performed for one-half of the unearned

service revenue.

Unearned Service Revenue 4,600

Service Revenue 4,600

3-39 LO 2
 LEARNING
OBJECTIVE
3 Prepare adjusting entries for accruals.

Accruals are made to record

◆ Revenues for services performed but not yet
recorded at the statement date.
◆ Expenses incurred but not yet paid or recorded at
the statement date.

3-40 LO 3
 Accrued Revenues

Revenues for services performed but not yet received

in cash or recorded.

Revenue Recorded BEFORE Cash Receipt

Accrued revenues often occur in regard to:

◆ Rent
◆ Interest
◆ Services

3-41 LO 3
 Accrued Revenues

◆ Adjusting entry shows the receivable that exists and

records the revenues for services performed.
◆ Adjusting entry:
► Increases (debits) an asset account and
► Increases (credits) a revenue account.

Illustration 3-13

3-42 LO 3
 Accrued Revenues

Illustration: In October Pioneer Advertising

performed services worth $200 that were not
billed to clients on or before October 31.

Oct. 31

Accounts Receivable 200

Service Revenue 200

On November 10, Pioneer receives cash of $200 for the services

performed.

Nov. 10 Cash 200

Accounts Receivable 200
3-43 LO 3
 Accrued Revenues
Illustration 3-14

3-44 LO 3
 Accrued Revenues

Summary of the accounting for accrued revenues.

Illustration 3-15

3-45 LO 3
 Accrued Expenses

Expenses incurred but not yet paid in cash or recorded.

Expense Recorded BEFORE Cash Payment

Accrued expenses often occur in regard to:

◆ Rent ◆ Taxes
◆ Interest ◆ Salaries

3-46 LO 3
 Accrued Expenses

◆ Adjusting entry records the obligation and recognizes

the expense.
◆ Adjusting entry:
► Increase (debit) an expense account and
► Increase (credit) a liability account.

Illustration 3-16

3-47 LO 3
 Accrued Expenses

ACCRUED INTEREST
Illustration: Pioneer Advertising signed a three-month note
payable in the amount of $5,000 on October 1. The note requires
Pioneer to pay interest at an annual rate of 12%.
Illustration 3-17

Oct. 31 Interest expense 50

Interest payable 50

3-48 LO 3
 Accrued Expenses
Illustration 3-18

3-49 LO 3
 Accrued Expenses

ACCRUED INTEREST
Illustration: Pioneer Advertising paid salaries and wages on
October 26; the next payment of salaries will not occur until
November 9. The employees receive total salaries of $2,000 for a
five-day work week, or $400 per day.
Illustration 3-19

3-50 LO 3
 Accrued Expenses
Illustration 3-20

3-51 LO 3
 Accrued Expenses

Summary of the accounting for accrued expenses.

Illustration 3-21

3-52 LO 3
3-53 LO 3
 Summary of Basic Relationships
Illustration 3-22

3-54 LO 3
 DO IT! 3 Adjusting Entries for Accruals

Micro Computer Services began operations on August 1, 2017. At the

end of August 2017, management prepares monthly financial
statements. The following information relates to August.
1. At August 31, the company owed its employees $800 in
salaries and wages that will be paid on September 1.
2. On August 1, the company borrowed $30,000 from a local bank
on a 15-year mortgage. The annual interest rate is 10%.
3. Revenue for services performed but unrecorded for August
totaled $1,100.
Prepare the adjusting entries needed at August 31, 2017.

3-55 LO 3
 DO IT! 3 Adjusting Entries for Accruals

Prepare the adjusting entries needed at August 31, 2017.

1. At August 31, the company owed its employees $800 in
salaries and wages that will be paid on September 1.
Salaries and Wages Expense 800
Salaries and Wages Payable 800
2. On August 1, the company borrowed $30,000 from a local bank
on a 15-year mortgage. The annual interest rate is 10%.
Interest Expense 250
Interest Payable 250
3. Revenue for services performed but unrecorded for August
totaled $1,100.
Accounts Receivable 1,100
Service Revenue 1,100
3-56 LO 3
 LEARNING Describe the nature and purpose of an
4
OBJECTIVE adjusted trial balance.

Adjusted Trial Balance

◆ Prepared after all adjusting entries are journalized and
posted.

◆ Purpose is to prove the equality of debit balances and

credit balances in the ledger.

◆ Is the primary basis for the preparation of financial

statements.

3-57 LO 4
 Illustration 3-25

3-58 LO 4
 Adjusted Trial Balance

Question
Which of the following statements is incorrect concerning the adjusted
trial balance?
a. An adjusted trial balance proves the equality of the total debit
balances and the total credit balances in the ledger after all
adjustments are made.
b. The adjusted trial balance provides the primary basis for the
preparation of financial statements.
c. The adjusted trial balance lists the account balances segregated
by assets and liabilities.
d. The adjusted trial balance is prepared after the adjusting entries
have been journalized and posted.

3-59 LO 4
 Preparing Financial Statements

Financial Statements are prepared directly from the

Adjusted Trial Balance.

Owner’s
Income Balance
Equity
Statement Sheet
Statement

3-60 LO 4
 Illustration 3-26
Preparation of the income statement and owner’s
equity statement from the adjusted trial balance
3-61
 Illustration 3-27
Preparation of the balance sheet from
the adjusted trial balance

3-62 LO 4
 DO IT! 4 Trial Balance

(a) Determine the net income for the quarter April 1 to June 30.
(b) Determine the total assets and total liabilities at June 30, 2017, for Skolnick Co.
(c) Determine the amount of owner’s capital at June 30, 2017. LO 4
3-63
 DO IT! 4 Trial Balance

3-64 LO 4
 DO IT! 4 Trial Balance

3-65 LO 4
 DO IT! 4 Trial Balance

3-66 LO 4
 LEARNING APPENDIX 3A: Prepare adjusting entries
OBJECTIVE
5
for the alternative treatment of deferrals.

Alternate Treatment for Adjusting Entries

1. When a company prepays an expense, it debits that
amount to an expense account.

2. When it receives payment for future services, it

credits the amount to a revenue account.

3-67 LO 5
 Prepaid Expenses

Company may choose to debit (increase) an expense account

rather than an asset account. This alternative treatment is simply
more convenient.
Illustration 3A-2

3-68 LO 5
 Unearned Revenues

Company may credit (increase) a revenue account when they

receive cash for future services.
Illustration 3A-5

3-69 LO 5
 Summary of Additional Adjustments
Relationships
Illustration 3A-7

3-70 LO 5
 LEARNING APPENDIX 3B: Discuss financial reporting
OBJECTIVE
6
concepts.

Qualities of Useful Information

Two fundamental qualities, relevance and faithful representation.

Relevance

◆ Make a difference in a business decision.

◆ Provides information that has predictive value and

confirmatory value.

◆ Materiality is a company-specific aspect of relevance.

► An item is material when its size makes it likely to influence

the decision of an investor or creditor.

3-71 LO 6
 Qualities of Useful Information

Two fundamental qualities, relevance and faithful representation.

Faithful Representation

◆ Information accurately depicts what really happened.

◆ Information must be

► complete (nothing important has been omitted),

► neutral (is not biased toward one position or another), and

► free from error.

3-72 LO 6
 Qualities of Useful Information

ENHANCING QUALITIES

Comparability Information is Information has the

results when different verifiable if quality of
companies use the independent understandability
same accounting observers, using the if it is presented in a
principles. same methods, obtain clear and concise
similar results. fashion.

Consistency means
that a company uses the For accounting information
same accounting to have relevance, it must
principles and methods be timely.
from year to year.

3-73 LO 6
 Assumptions in Financial Reporting
Illustration 3B-2

Monetary Unit Economic Entity

Requires that only those things States that every economic
that can be expressed in entity can be separately
money are included in the identified and accounted for.
accounting records.

3-74 LO 6
 Assumptions in Financial Reporting
Illustration 3B-2

Time Period Going Concern

States that the life of a The business will remain in
business can be divided into operation for the
artificial time periods. foreseeable future.

3-75 LO 6
 Principles of Financial Reporting

MEASUREMENT PRINCIPLES

Historical Cost Fair Value

Or cost principle, Indicates that
dictates that assets and
companies record liabilities should be
assets at their cost. reported at fair
value (the price
received to sell an
asset or settle
a liability).

3-76 LO 6
 Principles of Financial Reporting

Revenue Expense
Full Disclosure
Recognition Recognition
Principle
Principle Principle
Requires that Dictates that efforts Requires that
companies (expenses) be companies disclose
recognize revenue matched with all circumstances
in the accounting results (revenues). and events that
period in which the Thus, expenses would make a
performance follow revenues. difference to
obligation is financial statement
satisfied. users.

3-77 LO 6
 Cost Constraint

Cost Constraint
Accounting standard-setters weigh
the cost that companies will incur to
provide the information against the
benefit that financial statement
users will gain from having the
information available.

3-78 LO 6
 A Look at IFRS

LEARNING Compare the procedures for adjusting

OBJECTIVE
7
entries under GAAP and IFRS.

Key Points
Similarities
◆ Companies applying IFRS also use accrual-basis accounting to
ensure that they record transactions that change a company’s
financial statements in the period in which events occur.
◆ Similar to GAAP, cash-basis accounting is not in accordance with
IFRS.
◆ IFRS also divides the economic life of companies into artificial time
periods. Under both GAAP and IFRS, this is referred to as the time
period assumption.
3-79 LO 7
 A Look at IFRS

Key Points
Similarities
◆ The general revenue recognition principle required by GAAP that is
used in this textbook is similar to that used under IFRS.
◆ Revenue recognition fraud is a major issue in U.S. financial
reporting. The same situation occurs in other countries, as
evidenced by revenue recognition breakdowns at Dutch software
company Baan NV, Japanese electronics giant NEC, and Dutch
grocer Ahold NV.

3-80 LO 7
 A Look at IFRS

Key Points
Differences
◆ Under IFRS, revaluation (using fair value) of items such as land and
buildings is permitted. IFRS allows depreciation based on
revaluation of assets, which is not permitted under GAAP.
◆ The terminology used for revenues and gains, and expenses and
losses, differs somewhat between IFRS and GAAP. For example,
income includes both revenues, which arise during the normal
course of operating activities, and gains, which arise from activities
outside of the normal sales of goods and services. The term income
is not used this way under GAAP. Instead, under GAAP income
refers to the net difference between revenues and expenses.

3-81 LO 7
 A Look at IFRS

Key Points
Differences
◆ Under IFRS, expenses include both those costs incurred in the
normal course of operations as well as losses that are not part of
normal operations. This is in contrast to GAAP, which defines each
separately.

3-82 LO 7
 A Look at IFRS

Looking into the Future

The IASB and FASB are completing a joint project on revenue
recognition. The purpose of this project is to develop comprehensive
guidance on when to recognize revenue. It is hoped that this approach
will lead to more consistent accounting in this area. For more on this
topic, see www.fasb.org/project/revenue_recognition.shtml.

3-83 LO 7
 A Look at IFRS

IFRS Practice
IFRS:
a. uses accrual accounting.
b. uses cash-basis accounting.
c. allows revenue to be recognized when a customer makes an
order.
d. requires that revenue not be recognized until cash is received.

3-84 LO 7
 A Look at IFRS

IFRS Practice
Which of the following statements is false?
a. IFRS employs the periodicity assumption.
b. IFRS employs accrual accounting.
c. IFRS requires that revenues and costs must be capable of
being measured reliably.
d. IFRS uses the cash basis of accounting.

3-85 LO 7
 A Look at IFRS

IFRS Practice
As a result of the revenue recognition project being undertaken by
the FASB and IASB:
a. revenue recognition places more emphasis on when the
performance obligation is satisfied.
b. revenue recognition places more emphasis on when revenue
is realized.
c. revenue recognition places more emphasis on when
expenses are incurred.
d. revenue is no longer recorded unless cash has been
received.

3-86 LO 7
 Copyright

“Copyright © 2015 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Copyright Act without the
express written permission of the copyright owner is unlawful.
Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser
may make back-up copies for his/her own use only and not for
distribution or resale. The Publisher assumes no responsibility for
errors, omissions, or damages, caused by the use of these
programs or from the use of the information contained herein.”

3-87