Baron Coburg

(A Case Study)
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.
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.
 IVAN FREDERICK
20-acre plot of 10-acre plot of
ground ground
20 bushels of wheat 10 bushels of wheat
for seed for seed
20 pounds of 10 pounds of
fertilizer worth 2 fertilizer worth 1
bushels of wheat bushel of wheat
Oxen good for 10 Oxen good for 10
years which was years which was
worth 40 bushels of worth 40 bushels of
wheat wheat
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.
 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 Took 30 bushels of wheat
for personal use for personal use
all his supplies of seeds used all of his seeds and
and fertilizers were used fertilizers
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.
II. Problem
OWho should Baron Coburg
choose to do the farming
next season based on Ivan’s
and Frederick’s
performances?
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
Beginning Balances of Ivan
and Frederick
IVAN FREDERICK
20-acre plot of 10-acre plot of
ground ground
20 bushels of wheat 10 bushels of wheat
for seed for seed
20 pounds of 10 pounds of
fertilizer worth 2 fertilizer worth 1
bushels of wheat bushel of wheat
Oxen good for 10 Oxen good for 10
years which was years which was
worth 40 bushels of worth 40 bushels of
wheat wheat
 IVAN FREDERICK
Convert Convert
amounts amounts
into bushels into bushels
of wheat: of wheat:
20-acre plot of 20(5) = 100 10-acre plot of 10(5) = 50
ground ground
20 bushels of 20 10 bushels of 10
wheat for wheat for
seed seed
20 pounds of 2 10 pounds of 1
fertilizer fertilizer
worth 2 worth 1
bushels of bushel of
wheat wheat
Oxen good for 40 Oxen good for 40
10 years 10 years
which was which was
worth 40 worth 40
bushels of bushels of
wheat wheat
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 Payment to Feyador worth 3
wheat for the plow bushels of wheat of his
harvest for the plow
Took 20 bushels of wheat for Took 30 bushels of wheat for
personal use personal use
all his supplies of seeds and used all of his seeds and
fertilizers were used fertilizers
 IVAN FREDERICK
Convert Convert
amounts into amounts into
bushels of bushels of
wheat: wheat:
A slightly used (4) A partially used (4)
ox ox
A broken plow - Plow (1)
223 bushels of 223 105 bushels of 105
wheat wheat

Owed Feyador 3 (3) Payment to 3

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

Owed Feyador 3 (3) Payment to 3

bushels of Feyador worth
wheat for the 3 bushels of
plow wheat of his
harvest for the
plow
Took 20 bushels 20 Took 30 bushels 30
of wheat for of wheat for
personal use personal use
all his supplies Seed = (20) used all of his Seed = (10)
of seeds and seeds and
fertilizers were Fertilizer = (2) fertilizers Fertilizer = (1)
Analysis of Performance of
Two Peasants
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.
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.
WINNER!
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