You are on page 1of 7

Baron Coburg’s Sole Proprietorship

Tabulated Information for Plot worked by Ivan


For the Growing Season

Bushels of
Wheat
Land Seed Fertilizer Ox Plow = Accounts
Payable
Owners’ Equity Description of Transaction

Pre-season 100 bw. 100 bw. Land from Baron


20 bw. 20 bw. Seeds from Baron
2 bw. 2 bw. Fertilizer from Baron
40 bw. 40 bw. Ox from Baron
SUBTOTAL 0 bw. 100 bw. 20 bw. 2 bw. 40 bw. 0 bw. 0 bw. 162 bw.
TOTAL 162 bw. 162 bw.
Post-Season 243 bw. 243 bw. Revenue
-2 bw. -2 bw. Used Fertilizer
-20 bw. -20 bw. Used Seed
-4 bw. -4 bw. Used Ox (DEPRECIATION)
3 bw. 3 bw. Owed from Feyador the Plowmaker
-3 bw. -3 bw. Used Plow (DEPRECIATION)
-20 bw. -20 bw. Withdrawn by Baron Coburg
SUBTOTAL 223 bw. 100 bw. 0 bw. 0 bw. 36 bw. 0 bw. 3 bw. 356 bw.
TOTAL 359 bw. 359 bw.

Baron Coburg’s Sole Proprietorship


Tabulated Information for Plot worked by Frederick
For the Growing Season

Bushels of
Wheat
Land Seed Fertilizer Ox Plow = Accounts
Payable
Owners’ Equity Description of Transaction

Pre-season 50 bw. 50 bw. Land from Baron


10 bw. 10 bw. Seeds from Baron
1 bw. 1 bw. Fertilizer from Baron
40 bw. 40 bw. Ox from Baron
SUBTOTAL 0 bw. 50 bw. 10 bw. 1 bw. 40 bw. 0 bw. 0 bw. 101 bw.
TOTAL 101 bw. 101 bw.
Post-Season 138 bw. 138 bw. Revenue
-1 bw. -1 bw. Used Fertilizer
-10 bw. -10 bw. Used Seed
-4 bw. -4 bw. Used Ox (DEPRECIATION)
-3 bw. 3 bw. Paid Feyador the Plowmaker
-1 bw. -1 bw. Used Plow (DEPRECIATION)
-30 bw. -30 bw. Withdrawn by Baron Coburg
SUBTOTAL 105 bw. 50 bw. 0 bw. 0 bw. 36 bw. 2 bw. 0 bw. 193 bw.
TOTAL 193 bw. 193 bw.
Baron Coburg’s Sole Proprietorship
Income Statement for Plot worked by Ivan
For the Growing Season

Revenues 223 bw.


Less: Production Expenses
Seed 20 bw.
Fertilizer 2 bw.
Less: Depreciation and Amortization
Depreciation of Ox 4 bw.
Depreciation of Plow 3 bw.
Earnings 194 bw.
Withdrawn by Owner 20 bw.
Increase in Retained Earnings 214 bw.
--> Thus Ivan has a “production rate” of 214 bw. /20 acres of land = 10.7 bw. per acre of land

Baron Coburg’s Sole Proprietorship


Income Statement for Plot worked by Frederick
For the Growing Season

Revenues 108 bw.


Less: Production Expenses
Seed 10 bw.
Fertilizer 1 bw.
Less: Depreciation and Amortization
Depreciation of Ox 4 bw.
Depreciation of Plow 1 bw.
Earnings 92 bw.
Withdrawn by Owner 30 bw.
Increase in Retained Earnings 122 bw.
--> Thus Frederick has a “production rate” of 122 bw. /10 acres of land = 12.2 bw. per acre of land

Since 10.7 bw/acre < 12.2 bw./acre,


Frederick is the “better farmer” since he has a higher “production rate.”
Baron Coburg’s Sole Proprietorship
Statement of Owners’ Equity for Plot worked by Ivan
For the Growing Season

Retained Earnings at beginning of growing season 0 bw.


Add: Increase in Retained Earnings 214 bw.
Deduct: Withdrawn by Owner 20 bw.
Retained Earnings at end of growing season 194 bw.

Baron Coburg’s Sole Proprietorship


Statement of Owners’ Equity for Plot worked by Frederick
For the Growing Season

Retained Earnings at beginning of growing season 0 bw.


Add: Increase in Retained Earnings 122 bw.
Deduct: Withdrawn by Owner 30 bw.
Retained Earnings at end of growing season 92 bw.
Baron Coburg’s Sole Proprietorship Baron Coburg’s Sole Proprietorship
Balance Sheet for Plot worked by Ivan Balance Sheet for Plot worked by Ivan
As of the Beginning of the Growing Season As of the End of the Growing Season

Assets Assets
Current Assets Current Assets
Bushels of Wheat 0 bw. Bushels of Wheat 223 bw.
Seed 20 bw. Seed 0 bw.
Fertilizer 2 bw. Fertilizer 0 bw.
Total Current Assets 22 bw. Total Current Assets 223 bw.
Fixed Assets Fixed Assets
Land 100 bw. Land 100 bw.
Property, Plant and Equipment Property, Plant and Equipment
Ox 40 bw. Ox 40 bw.
Total Net Fixed Assets 140 bw. Plow 3 bw.
Total Assets 162 bw. Less: Accumulated Depreciation
Ox Usage -4 bw.
Plow Usage -3 bw.
Total Net Fixed Assets 136 bw.
Total Assets 359 bw.

Liabilities and Owners’ Equity Liabilities and Owners’ Equity


Current Liabilities
Total Liabilities 0 bw.
Loan from Feyador the Plowmaker 3 bw.
Owners’ Equity Total Long Term Liabilities 3 bw.
Baron Coburg, capital 162 bw. Owners’ Equity
Total Owners’ Equity 162 bw. Baron Coburg, capital 162 bw.
Total Liabilities and Owners’ Equity 162 bw. Add: Increase in Retained Earnings 214 bw.
Deduct: Withdrawal by Owner -20 bw.
Total Owners’ Equity 356 bw.
Total Liabilities and Owners’ Equity 359 bw.
Baron Coburg’s Sole Proprietorship Baron Coburg’s Sole Proprietorship
Balance Sheet for Plot worked by Frederick Balance Sheet for Plot worked by Frederick
As of the Beginning of the Growing Season As of the End of the Growing Season

Assets
Assets
Current Assets
Current Assets
Bushels of Wheat 105 bw.
Bushels of Wheat 0 bw.
Seed 0 bw.
Seed 10 bw.
Fertilizer 0 bw.
Fertilizer 1 bw.
Total Current Assets 105 bw.
Total Current Assets 11 bw.
Fixed Assets
Fixed Assets
Land 50 bw.
Land 50 bw.
Property, Plant and Equipment
Property, Plant and Equipment
Ox 40 bw.
Ox 40 bw.
Plow 3 bw.
Total Net Fixed Assets 90 bw.
Less: Accumulated Depreciation
Total Assets 101 bw. Ox Usage -4 bw.
Plow Usage -1 bw.
Total Net Fixed Assets 88 bw.
Total Assets 193 bw.

Liabilities and Owners’ Equity Liabilities and Owners’ Equity


Total Liabilities 0 bw. Total Long Term Liabilities 0 bw.
Owners’ Equity Owners’ Equity
Baron Coburg, capital 101 bw. Baron Coburg, capital 101 bw.
Total Owners’ Equity 101 bw. Add: Increase in Retained Earnings 122 bw.
Total Liabilities and Owners’ Equity 101 bw. Deduct: Withdrawal by Owner -30 bw.
Total Owners’ Equity 193 bw.
Total Liabilities and Owners’ Equity 193 bw.
Report Package for Plot Work by Ivan
Baron Coburg’s Sole Proprietorship Baron Coburg’s Sole Proprietorship
Balance Sheet for Plot worked by Ivan Balance Sheet for Plot worked by Ivan
As of the Beginning of the Growing Season As of the End of the Growing Season

Assets Assets
Current Assets Current Assets
Bushels of Wheat 0 bw. Bushels of Wheat 223 bw.
Seed 20 bw. Seed 0 bw.
Fertilizer 2 bw. Fertilizer 0 bw.
Total Current Assets 22 bw. Total Current Assets 223 bw.

Fixed Assets Fixed Assets


Land 100 bw. Land 100 bw.
Property, Plant and Equipment Property, Plant and Equipment
Ox 40 bw. Ox 40 bw.
Total Net Fixed Assets 140 bw. Plow 3 bw.
Less: Accumulated Depreciation
Total Assets 162 bw.
Ox Usage -4 bw.
Plow Usage -3 bw.
Total Net Fixed Assets 136 bw.
Total Assets 359 bw.

Liabilities and Owners’ Equity Liabilities and Owners’ Equity


Current Liabilities
Total Liabilities 0 bw.
Loan from Feyador the Plowmaker 3 bw.
Owners’ Equity Total Long Term Liabilities 3 bw.
Baron Coburg, capital 162 bw. Owners’ Equity
Total Owners’ Equity 162 bw. Baron Coburg, capital 162 bw.
Total Liabilities and Owners’ Equity 162 bw. Add: Increase in Retained Earnings 214 bw.
Deduct: Withdrawal by Owner -20 bw.
Total Owners’ Equity 356 bw.
Total Liabilities and Owners’ Equity 359 bw.

Baron Coburg’s Sole Proprietorship


Income Statement for Plot worked by Ivan
For the Growing Season

Revenues 223 bw.


Less: Production Expenses
Seed 20 bw.
Fertilizer 2 bw.
Less: Depreciation and Amortization
Depreciation of Ox 4 bw.
Depreciation of Plow 3 bw.
Earnings 194 bw.
Withdrawn by Owner 20 bw.
Increase in Retained Earnings 214 bw.

Baron Coburg’s Sole Proprietorship


Statement of Owners’ Equity for Plot worked by Ivan
For the Growing Season

Retained Earnings at beginning of growing season 0 bw.


Add: Increase in Retained Earnings 214 bw.
Deduct: Withdrawn by Owner 20 bw.
Retained Earnings at end of growing season 194 bw.
Report Package for Plot Work by Frederick

Baron Coburg’s Sole Proprietorship Baron Coburg’s Sole Proprietorship


Balance Sheet for Plot worked by Frederick Balance Sheet for Plot worked by Frederick
As of the Beginning of the Growing Season As of the End of the Growing Season

Assets Assets

Current Assets Current Assets


Bushels of Wheat 0 bw. Bushels of Wheat 105 bw.
Seed 10 bw. Seed 0 bw.
Fertilizer 1 bw. Fertilizer 0 bw.
Total Current Assets 11 bw. Total Current Assets 105 bw.

Fixed Assets Fixed Assets


Land 50 bw. Land 50 bw.
Property, Plant and Equipment Property, Plant and Equipment
Ox 40 bw. Ox 40 bw.
Total Net Fixed Assets 90 bw. Plow 3 bw.
Less: Accumulated Depreciation
Total Assets 101 bw.
Ox Usage -4 bw.
Plow Usage -1 bw.
Total Net Fixed Assets 88 bw.
Total Assets 193 bw.

Liabilities and Owners’ Equity Liabilities and Owners’ Equity


Total Liabilities 0 bw. Total Long Term Liabilities 0 bw.
Owners’ Equity Owners’ Equity
Baron Coburg, capital 101 bw. Baron Coburg, capital 101 bw.
Total Owners’ Equity 101 bw. Add: Increase in Retained Earnings 122 bw.
101 bw. Deduct: Withdrawal by Owner -30 bw.
Total Liabilities and Owners’ Equity
Total Owners’ Equity 193 bw.
Total Liabilities and Owners’ Equity 193 bw.

Baron Coburg’s Sole Proprietorship


Income Statement for Plot worked by Frederick
For the Growing Season

Revenues 108 bw.


Less: Production Expenses
Seed 10 bw.
Fertilizer 1 bw.
Less: Depreciation and Amortization
Depreciation of Ox 4 bw.
Depreciation of Plow 1 bw.
Earnings 92 bw.
Withdrawn by Owner 30 bw.
Increase in Retained Earnings 122 bw.

Baron Coburg’s Sole Proprietorship


Statement of Owners’ Equity for Plot worked by Frederick
For the Growing Season

Retained Earnings at beginning of growing season 0 bw.


Add: Increase in Retained Earnings 122 bw.
Deduct: Withdrawn by Owner 30 bw.
Retained Earnings at end of growing season 92 bw.