Q1	Q2
LLA Beginning Balance	$3,731.62	$4,002.07
write-offs	$808.90	735.15
addition to LLA	$500.00	$2,000.00
Ending Balance	3,422.712268548	5,266.92
Loan-nonperforming this quarter	$4,002.07	$3,800.04
minimum required 100% on non-performing	$4,002.07	$3,800.04
shortfall	(579.361008972)	1,466.88
deducted from income statements	$1,079.36	$2,000.00
penatly (other transaction cost in income statement)	$11.59	$0.00
	0.02
ending Balance =beginning balance - writeoff +provision for loan losses	4,002.07327752	5,266.92

From the summary balance sheet and income statement reports for quarter 1, answer the following:

a) Explain the loan loss allowance (LLA) reported in the balance sheet at the end of quarter 1. b) How much provision for loan losses was deducted from your income statement? Explain. c) Did you put in adequate provisions for loan losses? If less, what was the penalty incurred for setting aside less than 100% of current nonperforming loans A