CASE 1-3

IVAN'S PLOT
Ivan's Field
Balance Sheet Statement
For the Beginning of the Season
ASSETS
Bushels of Wheat
Land
Seeds
Fertilizer
Ox
Total Assets

Ivan's Field
Balance Sheet Statement
For the Beginning of the Season
ASSETS
Bushels of Wheat
Land
Seeds
Fertilizer
Ox
Total Assets

0
100
20
2
40
162

Liabilities

Liabilities
Accounts Payable
Total Liabilities

Equity
Capital, Beginning
Total Equity

162
162

Equity
Capital, End
Total Equity

TOTAL LIABILITIES AND EQUITY

162

TOTAL LIABILITIES AND EQUITY

Ivan's Field
Income Statement
For the Entire Harvesting Season
Revenue
Less:

Ivan's Field
Statement of Changes in Equity
For the End of the Season
243

Seed Expense
Fertilizer Expense
Depreciation Expense
Depreciation Expense

20
2
3
4

Profit
Withdrawal by Baron
Increase in Retained Earning

223
100
0
0
36
359

29
214
20
194

Capital Beginning
Add:
Profit
Total:
Less:
Withdrawals
Capital, End

FREDERICK'S PLOT
Frederick's Field
Balance Sheet Statement
For the Beginning of the Season
ASSETS
Bushels of Wheat
Land
Seeds
Fertilizer
Ox
Total Assets

Frederick's Field
Statement of Changes in Equity
For the End of the Season
Capital Beginning
Add:
Profit
Total:
Less:
Withdrawals
Capital, End

0
50
10
1
40
101

Liabilities

Frederick's Field
Balance Sheet Statement
For the Beginning of the Season

Equity
Capital, Beginning
Total Equity

101
101

TOTAL LIABILITIES AND EQUITY

101

ASSETS
Bushels of Wheat
Land
Seeds
Fertilizer
Ox
Plow
Total Assets

Federick's Field
Income Statement
For the Entire Harvesting Season
Revenue
Less:

105
50
0
0
36
2
193

Liabilities
Accounts Payable
Total Liabilities
138

Seed Expense
Fertilizer Expense
Depreciation Expense
Depreciation Expense

10
1
1
4

Profit
Withdrawal by Baron
Increase in Retained Earning

Equity
Capital, End
Total Equity
16
122
30
92

TOTAL LIABILITIES AND EQUITY

2 Which peasant was the better farmer?

Answer: Frederick is the better farmer because he produced 12.2 Bushels of Wheat per acre
(122 BW/10 acres of land), has saved two more season for the plow and left no liabilities. Ivan produced
10.7 Bushels of Wheat (214 BW/20 acres of land) which is 12.30% less than Fredericks

eld
Statement
of the Season

3
3

356
356
359

eld
nges in Equity
he Season
162
214
376
20
356

s Field
nges in Equity
he Season
101
122
223
30
193

s Field
Statement
of the Season

0
0

193
193
193

heat per acre

abilities. Ivan produced

Case 2-3
LONE PINE CAFE
BALANCE SHEET AS OF NOVEMBER 2, 2009
Assets
Current Assets
Cash
Inventory
Prepaid Expense
Total Current Assets
Cafe Equipment
Total Assets

$10,172.00
$2,800.00
$1,428.00
$14,400.00
$54,600.00
$69,000.00

Liabilities and Owners' Equity

Note Payable
$21,000.00
Owners' Equity
Mrs. Landers
$16,000.00
Mr. Antoine
$16,000.00
Mrs. Antoine
$16,000.00 $48,000.00
Total Liabilities and Owners' Equity
$69,000.00

Balance Sheet
March 30, 2010
LIABILITIES
Owners' Equity
Mr. Antoine 16,000.00
Withdrawal
855.50
Loss (-)
3,618.00
Mrs. Landers 16,000.00
Withdrawal
855.50
Loss (-)
3,618.00
Mr. Antoine 16,000.00
Loss (-)
3,618.00
Current Liabilities
Creditor
Loan
TOTAL LIABILITIES

ASSETS
11,526.50

11,526.50

Fixed Assets
Equipment
Less Depreciaition

12,382.00

Current Assets
Cash
Closing Stock
Prepaid License Fee

1,538.00
18,900.00
55,873.00

TOTAL ASSETS

53,200.00 50,755.00
2,445.00

1,900.00
2,430.00
833.00

55,918.00

Case 2-3
LONE PINE CAFE
BALANCE SHEET
AS OF NOVEMBER 2, 2009
Assets
Current Assets
Cash
Inventory
Prepaid Expense
Total Current Assets
Cafe Equipment
Total Assets

$10,172.00
$2,800.00
$1,428.00
$14,400.00
$54,600.00
$69,000.00
Liabilities and Owners' Equity

Note Payable
Owners' Equity
Mrs. Landers
Mr. Antoine
Mrs. Antoine
Total Liabilities and Owners' Equity

$21,000.00
$16,000.00
$16,000.00
$16,000.00 $48,000.00
$69,000.00

LONE PINE CAFE

Balance Sheet
As of March 30, 2010
LIABILITIES
Owners' Equity
Mr. Antoine 16,000.00
Withdrawal
855.50
Loss (-)
3,618.00
Mrs. Landers 16,000.00
Withdrawal
855.50
Loss (-)
3,618.00
Mr. Antoine 16,000.00
Loss (-)
3,618.00
Current Liabilities
Creditor
Loan
TOTAL LIABILITIES

ASSETS
11,526.50

11,526.50

Fixed Assets
Equipment
Less Depreciaition

12,382.00

Current Assets
Cash
Closing Stock
Prepaid License Fee

1,538.00
18,900.00
55,873.00

TOTAL ASSETS

53,200.00 50,755.00
2,445.00

1,900.00
2,430.00
833.00

55,918.00