The Beginning Teacher Evaluation Study (BTES), Phase II, was a research project on effective teaching behavior--what teachers do that significantly affects what and how pupils learn. The purposes of Phase II were to (1) develop an assessment system for measuring teacher and pupil behaviors and other factors which could influence each of them and their interrelationships and (2) generate hypotheses about the interrelationships among teacher and pupil behaviors and related factors. Forty-one second grade and 54 fifth grade experienced teachers participated in the study. This volume of the final report describes the APPLE (Anecdotal Processing to Promote Learning Experience) Observation System, a low inference descriptive record, which was used to specify the observable teacher and student behaviors. The behavior recording system employed in APPLE observations provided data on pupil behavior in reading and mathematics instruction, teacher responses to pupil behavior, the instructional contexts for both instructional areas at grades two and five, and the teaching activities which typified teacher behavior for these grades and instructional areas. Time duration data reflected time allocation of instruction in the several contexts which are common to the BTES classes. In general, the data reported here support the use of a behavior recording system as a valid tool for studying teacher performance characteristics. (RC)