U.S. Securities and Exchange Commission
                Washington, D.C.  20549

                      Form 10-QSB

[ X ]	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996

[    ]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
	EXCHANGE ACT
For the transition period from . . . . . . . . . . . . . . . 
 . . . . . to . . . . . . . . . . . . . . . . . . . . .

               Commission file number 0-21087

                Tollycraft Yacht Corporation
  (Exact name of small business issuer as specified in its 
   charter)

                         Minnesota
       (State or other jurisdiction of incorporation or 
        organization)

                        41-1735422
             (IRS Employer Identification No.)

          2200 Clinton Avenue, Kelso, Washington  98626
             (Address of principal executive offices)

                       (360) 423-5160
                 (Issuer's telephone number)

     Child Guard Corporation, 441 Crescent Drive, Albert Lea, 
          Minnesota  56007
     (Former name, former address and former fiscal year, if 
      changed since last report)

      Check whether the issuer (1) filed all the reports 
required to be filed by Section 13 or 15(d) of the Exchange 
Act during the past twelve months (or for such shorter 
period that the registrant was required to file such 
reports), and (2) has been subject to such filing 
requirements for the past 90 days.  Yes _______ No _X___

          APPLICABLE ONLY TO CORPORATE ISSUERS

      State the number of shares outstanding of each of the 
issuers classes of common equity, as of the latest practible 
date:   50,000,000

      Transitional Small Business Disclosure Format (check 
one):
Yes _______ No __X____

<PAGE>
                 PART I - FINANCIAL INFORMATION
                                   
  Item 1. Financial Statements
  TOLLYCRAFT YACHT CORPORATION
  Consolidated Balance Sheets
  
  ASSETS
                                                  December 31,       June 30,
                                                       1995             1996
  Current assets:
    Cash                                           $   20,022   $          44
    Accounts receivable                                23,038               0
    Raw material inventories                          450,000         455,000
    Costs incurred and income recognized in excess
         of billings on uncompleted contracts       1,598,669       1,606,314
    Other current assets                               58,105         149,927
           Total current assets                     2,149,834       2,211,285
  
  Equipment, net                                    2,786,908       2,841,219
  Product rights                                       22,000          22,000
  Net deferred tax assets                              15,325          15,325
  
           Totals assets                           $4,974,067   $   5,089,829  

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
  
  Current liabilities:
    Accounts payable                                $ 771,661       1,113,285
    Customer deposits                                 155,000         727,350
    Work-in-process financing                       2,942,287       3,000,000
    Accrued payroll and payroll related liabilitie  1,635,480       2,389,817
    Notes payable                                   2,708,986       3,258,117
    Other accrued liabilities                         248,304         413,900
    Long-term debt, due within one year               254,300         254,300
           Total current liabilities                8,716,018      11,156,769
  
  Long-term debt                                      737,380       1,126,534
  
  Stockholders' equity (deficit):
    Common stock, no par value, 1,000,000 shares    1,581,267       1,581,267
         authorized, issued and outstanding
    Retained deficit                               (6,060,598)     (8,774,741)
           Total stockholders' equity (deficit)    (4,479,331)     (7,193,474)
  
           Total liabilities and 
            stockholders'equity (deficit)         $ 4,974,067     $ 5,089,829 
  
<PAGE>

  TOLLYCRAFT YACHT CORPORATION
  Consolidated Statements of Operations
  
  
                        Three Months                    Six Months
                       Ended June 30,                  Ended June 30,
                    1995           1996           1995              1996
  
  
Net sales        $2,531,741    $1,168,033      $5,187,629        $3,765,623
  
Cost of sales     2,626,882     1,058,670       5,538,214         4,237,833
  
Gross margin        (95,141)      109,363        (350,585)         (472,210)
  
Selling expenses    137,905        44,469         317,964           268,588
  
General and 
administrative 
expenses            418,152       824,134         720,103         1,640,319
  
Loss from 
operations         (651,198)     (759,240)     (1,388,652)       (2,381,117)
  
Other income 
(expenses):
  Interest, net    (226,809)     (176,722)       (311,584)         (332,548)
    Other                 0          (479)              0              (479)
      Total other 
       income
       (expenses)  (226,809)     (177,201)       (311,584)         (333,027)
  
Loss before 
   benefit for 
   income taxes    (878,007)     (936,441)     (1,700,236)       (2,714,144)
  
Benefit for income 
taxes-deferred       15,325             0          15,325                 0
  
Net loss          $(862,682)    $(936,441)   $(1,684,911)       $(2,714,144)

<PAGE>

    TOLLYCRAFT YACHT CORPORATION
  Consolidated Statements of Cash Flows
  
  
                                                          Six Months
                                                         Ended June 30,
                                                       1995           1996
  
Cash, January 1,                                  $  265,664      $    20,022
  
Cash flows from operating activities:
  Net Loss                                        (1,684,911)      (2,714,144)
  Adjustments to reconcile net loss to net
  cash used in operating activities:
    Depreciation and amortization                    157,174          176,535
  Change in assets and liabilities:
    Accounts receivable                                                23,038
    Inventories                                      (83,668)          (5,000)
    Costs incurred and income recognized
    in excess of billings on uncompleted contracts   513,981           (7,645)
    Other current assets                            (102,507)         (91,821)
    Accounts payable                                (341,939)         341,624
    Customer deposits                               (730,535)         572,350
    Accrued payroll liabilities                      235,920          754,337
    Other accrued liabilities                          1,727          165,596
                                                  (2,034,758)        (785,130)
  
Cash flows from investing activities:
  Purchase of equipment                              (72,926)        (230,846)
  Investment in Purchase option                         (500)               0
                                                     (73,426)        (230,846)
 
Cash flows from financing activities:
  Proceeds from work-in-process financing          1,607,759        1,203,835
  Proceeds from notes payable                      1,072,732        1,261,791
  Proceeds from long-term debt                        41,838          406,615
  Repayment of work-in-process financing                   0       (1,146,122)
  Repayment of notes payable                        (687,035)        (712,660)
  Repayment of long-term debt                              0          (17,461)
                                                   2,035,294          995,998
  
Cash, June 30,                                   $   192,774    $          44
  
<PAGE>

  TOLLYCRAFT YACHT CORPORATION
  Notes to Consolidated Financial Statements
  For the Three Months Ending June 30, 1996
  
  Note 1 - Basis of Presentation
  
     The accompanying financial statements have been prepared
       by Tollycraft Yacht Corporation without audit, pursuant
       to the rules and regulations of the Securities and
       Exchange Commission.  Certain information and footnote
       disclosures normally included in financial statements
       prepared in accordance with generally accepted accounting
       principles have been condensed or omitted pursuant to
       such rules and regulations.
     
     The financial information presented herein reflects all
       normal recurring adjustments which are, in the opinion of
       management, necessary for fair presentation of the
       results for the interim periods presented.  The results
       for the interim periods are not necessarily indicative of
       the results to be expected for the full year.
     
     The presentation of financial statements in conformity
       with generally accepted accounting principles requires
       management to make estimates and assumptions that affect
       reported amounts of assets, liabilities, income and
       expenses and disclosure of other accounting information. 
       Future events could alter such estimates.
     
  Note 2 - Summary of Significant Accounting Policies
  
     The Company and Acquisitions
          Tollycraft Yacht Corporation (the  Company ) was
            incorporated under the laws of the State of
            Minnesota on December 7, 1992.  The Company changed
            its name from Child Guard Corporation in January
            1996.  Also in January 1996 the Company acquired
            all of the outstanding common stock of Tollycraft
            Acquisition Corporation ( TAC ), a Washington
            corporation incorporated on February 4, 1994.
          
          The acquisition by the Company of TAC has been
            accounted for as a pooling of interests.  Except
            where otherwise indicated, references to the
            Company in these financial statements and notes
            thereto include the activities of TAC.
          
     Nature of business
          Tollycraft Yacht Corporation (the  Company ), is
            engaged in the manufacture and distribution of
            luxury motor yachts.
          
     Cash
          The Company periodically throughout the period
            maintained cash balances in its bank accounts in
            excess of federally insured limits.
     
     Inventories
          Inventories are valued at the lower of average cost
            or market.
     
     Equipment
          Equipment is valued at cost.  Depreciation of
            equipment is provided using the straight-line
            method over the estimated useful lives of the
            assets.  Additions and improvements, including
            patterns and molds for yacht production which have
            been produced in house, are capitalized at cost.

<PAGE>

  TOLLYCRAFT YACHT CORPORATION
  Notes to Consolidated Financial Statements (continued)
  
  Note 1 - Summary of Significant Accounting Policies
  (continued)
     
     1.Estimated Warranties
          The Company records an accrual at the time of sale
            of each yacht for estimated warranty claims.  There
            is a general one year parts and labor warranty to
            the original owner for defects in material and
            workmanship.  In addition, there is a 15 year
            transferable limited warranty for structural
            defects in all Tollycraft built hulls, deck
            bridges, stringers, and bulkheads.
  
     1. Revenue Recognition
          Revenue is recognized using the percentage-of-
            completion method.  This method is measured by
            comparing the percentage of costs incurred to date
            to the estimated total cost for each finished
            yacht.  Yacht costs include all direct material
            costs, direct labor costs, and indirect
            manufacturing costs such as indirect labor,
            supplies, small tools, and other indirect
            manufacturing overhead costs.  Selling, general and
            administrative costs, and interest on indebtedness
            are charged to expense as incurred.  
  
          Changes in job performance, job conditions, and
            estimated profitability may result in revisions to
            estimated costs and income, which are recognized in
            the period in which the revisions are determined.
          
          The current asset  Costs incurred and income
            recognized in excess of billings on uncompleted
            contracts,  represents costs and estimated contract
            profits for yachts in process.
          
          
     1. Pension and profit sharing plans
          Union employees participate in a pension plan which
            qualifies under Section 401(k) of the Internal
            Revenue Code.  The Company is required to make
            annual contributions of $.05 per labor hour worked. 
            Non-union employees of the Company also participate
            in a Section 401(k) pension plan.  The Company is
            not required and has not made any contributions to
            the non-union plan.
     
  Note 3 - Uncompleted Contracts
  
     Costs incurred and billings on uncompleted contracts
       consisted of the following:
          Costs incurred on uncompleted contracts      $      1,449,727
          Income (loss) recognized                              156,587
                                                           $  1,606,314
          
  Note 4 - Equipment and Leasehold Improvements
  
     Equipment consists of the following:
          Manufacturing equipment                 $             354,480
          Office furniture and equipment                        376,320
          Molds and patterns                                  2,805,056
                                                              3,535,856
          Less accumulated depreciation                        (694,637)
                                                           $  2,841,219

<PAGE> 

 TOLLYCRAFT YACHT CORPORATION
  Notes to Consolidated Financial Statements (continued)
  
  Note 4 - Work-in-process Financing
     
     The Company has available a $3,000,000 line-of-credit
       with Caterpillar Financial Services Corporation.  Under
       the terms of the agreement, borrowings are limited to 75%
       of the dealer net price of each particular yacht. 
       Advances are made at 1/3 upon commencement of hull
       lamination, 1/3 upon commencement of the assembly
       process, and 1/3 upon installation of the engines. 
       Interest on borrowings are payable monthly at a variable
       rate.  Borrowings are collateralized by substantially all
       assets.  Outstanding borrowings at June 30, 1996 were $
       3,000,000.
     
     The Company is also required to maintain a minimum level
       of stockholder s equity and a ratio of total liabilities
       to stockholders equity.  At June 30 31, 1996, the Company
       was in violation of these minimum requirements.
     
  Note 5 - Notes Payable
     
     The Company has a line-of-credit with Vera Corporation
       for working capital purposes.  Interest on the borrowings
       are payable monthly at a rate of 12% per annum. 
       Borrowings are collateralized by substantially all
       assets.  Outstanding borrowings at June 30, 1996 were $
       3,258,117.
     
  Note 6 - Other Accrued Liabilities
     
     Other accrued liabilities consisted of the following:
          Estimated liabilities for warranties                   $     25,051
          Interest                                                     95,005
          Accrued factory lease                                        59,000
          Accrued employee medical insurance                           50,250
          Liability insurance contract payable                         80,832
          Excise taxes                                                 40,750
          Other current liabilities                                    63,012
                                                                   $  413,900
  
  Note 7 - Long-term Debt
  
     Long-term debt consists of various obligations assumed in
       1994 by Tollycraft Acquisition Corporation in connection
       with the purchase of the yacht manufacturing business,
       tooling, molds, patterns and all rights and privileges to
       the name  Tollycraft .
  
  Note 8 - Operating Lease Commitments
     
     The Company leases certain vehicles and machinery under
       non-cancelable operating leases.  Minimum future lease
       payments under these operating leases are as follows:
     
     Years ending   1996           $   19,836
                    1997               19,836
                    1998                6,612
                                   $   46,284
     The Company also leases its manufacturing facilities and
       effective October 1, 1995 has entered into a twenty year
       lease at $29,500 per month.  The agreement calls for 7%
       increases at the end of each five year period of the
       lease.

<PAGE>

    TOLLYCRAFT YACHT CORPORATION
  Notes to Consolidated Financial Statements (continued)
  
  Note 9 - Provision for Income Taxes
     
     Deferred income taxes are recognized for all significant
       temporary differences between the tax and financial
       statement basis of assets and liabilities.  The
       classification of the resulting deferred tax assets and
       liabilities is based upon the classification of the
       related balance sheet asset or liability.  Deferred tax
       assets and liabilities result principally from the
       Company s net operating loss carryforwards, differences
       in depreciation methods for tax purposes and other
       temporary differences.  A valuation allowance has been
       created for purposes of financial reporting.
     
  Note 10 - Subsequent Events
     
     Tollycraft Yacht Corporation has issued and is currently
       offering in a private placement $3,000,000 of promissory
       notes convertible into common stock.  Additionally, the
       Company has signed a letter of intent with a financing
       consultant to provide investment banking and advisory
       services in connection with a secondary offering of
       $9,000,000 of common stock.
  
<PAGE>

  Item 2. Management s Discussion and Analysis or Plan of
  Operation
  
  Tollycraft Acquisition Corporation ( TAC ) is the successor of
  the original manufacturer of Tollycraft Yachts.  The
  stockholders of TAC formed a new management group with
  specific goals including (1) The commitment to maintain
  customer and dealer relationships, (2)  Shape maximum customer
  confidence,  (3) Invest in updating and redesigning the
  current product line,  (4)  Develop a new series of yachts, 
  (5)  Streamline management,  (6)  Expand the dealer network. 
  Significant expenses have been incurred to implement these
  goals.
  
  In the fall of 1995 Tollycraft Acquisition Corporation was
  actively seeking a business partner to raise funds in order to
  continue with its business plan.  As part of the business plan
  Tollycraft Acquisition Corporation was acquired by Child Guard
  Corporation in order  to raise capital in the public market.
  
  Results of Operations:
  
  Current results reflect the difficulty of making significant
  changes in the operations of a manufacturer of large goods
  with heavy working capital requirements.  Some improvement has
  been seen in material cost containment and manufacturing labor
  efficiencies.  For the second quarter of 1996, the gross
  margin improved to 9%.  The improvement is the result of
  increased labor efficiencies, material cost containment and
  higher sales prices for finished goods.
  
  Management continues to put emphasis on the following steps to
  improve the operations of the Company:
  
     1. Increased basic pricing on current models for
          greater profit margins to reflect the higher
          quality products being manufactured.
     2. Select new materials to upgrade the quality of
          interiors while emphasizing production efficiency.
     3. Design a new line of yachts to augment the current
          models offered.  The new yachts are engineered for
          more efficient production and priced at greater
          profit margins.
     4. Continue developing relationships with dealers that
          are capable of providing their own inventory
          financing.
     5. Increase the dealer network for nationwide
          marketing capability to increase sales volume and
          reach economies of scale.
     6. Redesign manufacturing processes to make production
          more efficient.
     7. Modernize the manufacturing plant for increased
          capacity and efficiency of material flow.
     8. Develop a labor tracking system to monitor and
          reduce direct labor costs.
  
  During the second quarter the Company continued to experience
  problems relating to cash flow.  Direct labor personnel were
  cut back to reflect the availability of cash to meet payroll
  needs.  With the reduced manufacturing capacity a portion of
  the overhead personnel were also given temporary lay off
  notices pending the call back of direct labor to manufacture
  at full capacity.
  
  The decrease in manufacturing capacity resulted in a decrease
  in revenues for the second quarter.  Revenues declined 45%
  from first quarter results of $2,596,358 to $1,168,033. 
  However, the gross margin improved from a negative ratio of -
  17% to a positive ratio of approximately 9%.  

<PAGE>
  
  Financial Condition:
  
  During the second quarter of 1996, the Company continued to
  incur operating losses of $936,441 which increased the
  negative net worth to -$8,774,741.  The cumulative losses of
  the Company continue to be financed through current
  liabilities.  Current liabilities of $11,156,769 exceed
  current assets of $2,211,285 resulting in a current ratio of
  .20 as compared to .29 at the end of the first quarter. 
  Current liabilities include a revolving credit facility of
  $3,000,000 from a marine engine supplier to assist financing
  of work-in-process inventories.  The remaining current
  liabilities are trade payables, another working capital loan,
  deposits from customers, and accrued payroll related expenses
  and undeposited payroll taxes.
  
  TAC has not been able to make timely payments to trade
  suppliers and various taxing authorities.  Deferred payment
  terms have been negotiated with the taxing authorities and the
  vast majority of trade vendors.  Material suppliers continue
  to provide the Company with its raw material needs on a COD
  basis and no orders have been canceled.  
  
  During the second quarter of 1996 union employees rejected a
  one year contract recommended by union leadership. 
  Negotiations continue with the assistance of a federal
  mediator.  A favorable outcome is anticipated by management.
  
  Long-term debt of $1,380,834 (including current maturities) is
  mainly obligations assumed by TAC in exchange for
  miscellaneous machinery and equipment as well as the molds and
  tooling necessary to manufacture the current line of yachts. 
  Management believes the book value of these assets is
  significantly understated when considering replacement cost
  values and the potential earnings capability of the tooling.
  
  Capital expenditures during the second quarter of 1996 were $
  195,752 adding to a total investment in equipment and tooling
  of $704,095 since the reorganization.  A majority of the
  expenditures in the second quarter relate to the construction
  of molds and tooling for a new 48  pilothouse motoryacht. 
  This new yacht design is planned to improve manufacturing
  processes and contribute a larger gross margin to the product
  mix.  Funds for these capital expenditures have been provided
  through current operations with a corresponding increase in
  current debt.  In order to establish the Company as a viable
  competitor in the industry, management has established an
  aggressive time schedule to upgrade existing molds and tooling
  and manufacture additional molds and tooling for the newly
  designed line of yachts.  Total capital expenditures necessary
  for completion of the product line upgrade and expansion is
  approximately $2,650,000.  The Company is dependent on
  external sources of funding to complete the plan.
  
  The Company is considering various alternatives to improve its
  financial position, meet ongoing trade obligations, pay
  delinquent tax balances, and fund capital expenditure
  requirements including converting current debt to equity
  through the issuance of common shares, and the sale of common
  shares to raise working capital.  The Company has engaged the
  services of professional advisors to perform these investment
  activities.  In addition, another supplier of marine engines
  has expressed an interest in providing working capital funding
  for projects that contain its products. 
  
  In order to increase production to a profitable level, the
  Company is in need of additional capital to build production
  tooling, finance inventory and provide working capital.  The
  Company is dependent on external sources of liquidity until
  projected levels of production and improvements in direct
  costs are achieved which will return the Company to
  profitability and a positive cash flow.  A material commitment
  for capital expenditures and working capital is necessary to
  meet the projected goals.  The expected source for a majority
  of the funds is from a private placement stock offering
  closely followed by a public stock offering.
  
  The Company has not realized additional working capital from
  the private placement memorandum or the public stock offering. 
  Management anticipates the need to halt production in the
  third quarter pending additional capital infusion in order to
    continue manufacturing.

<PAGE>

                    PART II - OTHER INFORMATION
                                  
  Item 1. Legal Proceedings
     
     All legal proceedings referenced involve Tollycraft
       Acquisition Corporation ( TAC ).
     
     Tollycraft Yachts Corp. (incorporated in Washington),
       Bankruptcy Case No. 93-34273T, United States Bankruptcy
       Court for the Western District of Washington at Tacoma
          Litigation surrounding payment of claim for
            attorney fees allegedly incurred by Transamerica
            Commercial Financial Corp. in the bankruptcy case
            involving the predecessor company.  Ruling in favor
            of Transamerica has been appealed to the 9th
            circuit Bankruptcy appellate Panel.  The parties
            are finalizing a recently negotiated settlement.
          
     Tollycraft Yachts Corp./California Factors & Finance and
       Tollycraft Acquisition Corporation v. Frederick Paulsell,
       Michael Coe, Thomas Cable, Nick Schmitt, et al.,
       Bankruptcy Adversary No. 93-34595T, United States
       Bankruptcy Court for the Western District of Washington
       at Tacoma.
          Complaint for breach of contract and interference
            with contractual relationship.  The parties are
            finalizing a settlement.
          
     Christine Marie Trujillo v. Tollycraft Yachts
          Threatened litigation in Superior Court of
            Washington for Cowlitz County
          Claim for sexual harassment and wrongful
            termination.  Complaint asks for unspecified sum in
            special damages for lost wages, benefits and
            expenses and general damages for emotional distress
            and attorney fees.  The parties are negotiating a
            resolution of the matter.
  
  Item 2. Changes in Securities
  
     No reportable events
  
  Item 3. Defaults upon Senior Securities
  
     No reportable events
  
  Item 4. Submission of Matters to a Vote of Security Holders
  
     None.
  
  Item 5. Other Information
  
     No reportable events
  
  Item 6. Exhibits and Reports on Form 8-K
  
     (a)  Exhibits.

	  Exhibit 27. Financial Data Schedule
     
     (b)  No reports on Form 8-K were filed during the quarter


                        Second Quarter 10 QSB [Signatures]

In accordance with the requirements of the Exchange Act, the registrant caused 
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


Tollycraft Yacht Corporation
    (Registrant)

Date: August 30, 1996

(Signature)
D.R. Cooley
President
Chief Executive Officer



(Signature)
William H. Lee
Controller