Solution and Analysis

1. Baron Coburg
(A Case Study)

5. I. Situation
O Baron Coburg was a feudal landlord and an
owner of many lands surrounding his high
castle. He wondered who should be the one
to do the farming of his land. Having 30
acres of land, of which an acre is worth 5
bushels of wheat each, he called two of his
peasants – Ivan and Frederick, to handle this
responsibility. He then divided his goods
among the two of them.

6. O Ivan was given 20-acre plot of ground, 20
bushels of wheat for seed, and 20 pounds of
fertilizer worth 2 bushels of wheat. On the
other hand, Frederick was given 10-acre plot
of ground, 10 bushels of wheat for seed, and
10 pounds of fertilizer. Baron gave both of
them oxen good for 10 years which was
worth 40 bushels of wheat. Feyador the
Plowmaker was to provide for their plows.
Baron Coburg then asked his two peasants to
come back the next fall.

7. IVAN FREDERICK
20-acre plot of
ground
10-acre plot of
ground
20 bushels of wheat
for seed
10 bushels of wheat
for seed
20 pounds of
fertilizer worth 2
bushels of wheat
10 pounds of
fertilizer worth 1
bushel of wheat
Oxen good for 10
years which was
worth 40 bushels of
wheat
Oxen good for 10
years which was
worth 40 bushels of
wheat

8. O Summer came and went and soon the two
peasants reported their earnings to Baron
Coburg. Ivan presented his master the
following: a slightly used ox, a broken plow,
and 223 bushels of wheat. He also reported
that he owed Feyador 3 bushels of wheat
for the plow and all his supplies of seeds
and fertilizers were used. Frederick
informed his master that he still has a partially
used ox, the plow for which he paid his
harvest 3 bushels of wheat to Feyador and
105 bushels of wheat. He also used all of
his seeds and fertilizers. Baron was
reminded that he took 20 bushels of wheat
from Ivan and 30 bushels of wheat from
Frederick for his personal use.

9. IVAN FREDERICK
A slightly used ox A partially used ox
A broken plow Plow
223 bushels of wheat 105 bushels of wheat
Owed Feyador 3 bushels
Payment to Feyador
of wheat for the plow
worth 3 bushels of wheat
of his harvest for the
plow
Took 20 bushels of wheat
for personal use
Took 30 bushels of wheat
for personal use
all his supplies of seeds
and fertilizers were used
used all of his seeds and
fertilizers

10. O After hearing all of these, Baron
dismissed Ivan and Frederick and then
began to contemplate about what he just
learned and who did better between his
two peasants.

11. II. Problem
OWho should Baron Coburg
choose to do the farming
next season based on Ivan’s
and Frederick’s
performances?

12. III. Alternative Courses of
Action
O To compare the Beginning Balances of
Ivan and Frederick.
O To compare the Income Statements of
Ivan and Frederick.
O To compare the Ending Balances of Ivan
and Frederick.
O Analysis of Performance of Two
Peasants

13. Beginning Balances of Ivan
and Frederick
IVAN FREDERICK
20-acre plot of
ground
10-acre plot of
ground
20 bushels of wheat
for seed
10 bushels of wheat
for seed
20 pounds of
fertilizer worth 2
bushels of wheat
10 pounds of
fertilizer worth 1
bushel of wheat
Oxen good for 10
years which was
worth 40 bushels of
wheat
Oxen good for 10
years which was
worth 40 bushels of
wheat

14. IVAN FREDERICK
Convert
amounts
into bushels
of wheat:
Convert
amounts
into bushels
of wheat:
20-acre plot of
ground
20(5) = 100 10-acre plot of
ground
10(5) = 50
20 bushels of
wheat for
seed
20 10 bushels of
wheat for
seed
10
20 pounds of
fertilizer
worth 2
bushels of
wheat
2 10 pounds of
fertilizer
worth 1
bushel of
wheat
1
Oxen good for
10 years
which was
worth 40
bushels of
wheat
40 Oxen good for
10 years
which was
worth 40
bushels of
wheat
40

17. Ending Balances of Ivan and Frederick
IVAN FREDERICK
A slightly used ox A partially used ox
A broken plow Plow
223 bushels of wheat 105 bushels of wheat
Owed Feyador 3 bushels of
wheat for the plow
Payment to Feyador worth 3
bushels of wheat of his
harvest for the plow
Took 20 bushels of wheat for
personal use
Took 30 bushels of wheat for
personal use
all his supplies of seeds and
fertilizers were used
used all of his seeds and
fertilizers

18. IVAN FREDERICK
Convert
amounts into
bushels of
wheat:
Convert
amounts into
bushels of
wheat:
A slightly used
ox
(4) A partially used
ox
(4)
A broken plow - Plow (1)
223 bushels of
wheat
223 105 bushels of
wheat
105
Owed Feyador 3
bushels of
wheat for the
plow
(3) Payment to
Feyador worth
3 bushels of
wheat of his
harvest for the
plow
3
Took 20 bushels
of wheat for
personal use
20 Took 30 bushels
of wheat for
personal use
30
all his supplies
of seeds and
fertilizers were
used
Seed = (20)
Fertilizer = (2)
used all of his
seeds and
fertilizers
Seed = (10)
Fertilizer = (1)

19. Income Statements of Ivan
and Frederick

21. Journal Entries - IVAN
1. Growing Expense - Seed 20
Seed - Assets 20
2. Growing Expense - Fertilizer 2
Fertilizer - Assets 2
3. Depreciation Expense - Ox 4
Accumulated Depreciation - Ox 4
4. Plowing Cost 3
Plowing Payable 3
5. Withdrawals 20
Baron's Contribution/ Ivan's Capital 20
6. Wheat Harvest 243
Income 243

22. Journal Entries - FREDERICK
1. Growing Expense - Seed 10
Seed - Assets 10
2. Growing Expense - Fertilizer 1
Fertilizer - Assets 1
3. Depreciation Expense - Ox 4
Accumulated Depreciation - Ox 4
4. Depreciation - Plow 1
Accumulated Depreciation - Plow 1
5. Withdrawals 30
Baron's Contribution/ Frederick's Capital 30
6. Wheat Harvest 138
Income 138

23. Ending Balances of Ivan and Frederick
IVAN FREDERICK
A slightly used ox A partially used ox
A broken plow Plow
223 bushels of wheat 105 bushels of wheat
Owed Feyador 3 bushels of
wheat for the plow
Payment to Feyador worth 3
bushels of wheat of his
harvest for the plow
Took 20 bushels of wheat for
personal use
Took 30 bushels of wheat for
personal use
all his supplies of seeds and
fertilizers were used
used all of his seeds and
fertilizers

24. IVAN FREDERICK
Convert
amounts into
bushels of
wheat:
Convert
amounts into
bushels of
wheat:
A slightly used
ox
(4) A partially used
ox
(4)
A broken plow - Plow (1)
223 bushels of
wheat
223 105 bushels of
wheat
105
Owed Feyador 3
bushels of
wheat for the
plow
(3) Payment to
Feyador worth
3 bushels of
wheat of his
harvest for the
plow
3
Took 20 bushels
of wheat for
personal use
20 Took 30 bushels
of wheat for
personal use
30
all his supplies
of seeds and
fertilizers were
used
Seed = (20)
Fertilizer = (2)
used all of his
seeds and
fertilizers
Seed = (10)
Fertilizer = (1)

27. Analysis of Performance of
Two Peasants

28. IV. Decision and
Recommendations
O Based on the results in given possessions
and earnings of the two peasants – Ivan and
Frederick, it is evidently stated especially in
the analysis of their performances that
Frederick produced more bushels of wheat
than Ivan. Although Ivan had the advantage of
having more assets than Frederick and that
only 20 bushels of wheat was taken from him
by Baron, he gained less bushels of wheat
than Frederick.

29. O Frederick is better and wiser farmer than
Ivan because he produced more bushels
of wheat and he was able to manage his
possessions carefully that Baron Coburg
had given to him. The peasant that
Baron Coburg must choose is
Frederick. Both peasants did well but
only one should have the right and
responsibility of the growing the wheat
next season. Frederick is the right
peasant to occupy the said position.

30. WINNER!

31. V. Sources/Appendix
O http://www.allfreepapers.com/Business/Baron-
Coburg/18059.html
O http://www.scribd.com/doc/49998920/Baron-
Coburg-Solution
O Fundamentals of Accounting Volume 1 (2007
Edition) by Cabrera, Ledesma, and Lupisan
O Basic Accounting: Made Easy (2014 Edition) by
Win Ballada and Susan Ballada