Baron Case Acct102
Baron Coburg
(from Anthony, Reece, and Hertenstein, 1995, “Accounting: Text and Cases”, p. 21)
Once upon a time many, many years ago, there lived a feudal landlord in a small province of Western Europe. The landlord, Baron Coburg, lived in a castle high on a hill. He was responsible for the well-being of many peasants who occupied the lands surrounding his castle. Each spring, as the snow began to melt, the Baron would decide how to provide for all his peasants during the coming year.
One spring, the Baron was thinking about the wheat crop of the coming growing season. “I believe that 30 acres of my land, being worth five bushels of wheat per acre, will produce enough wheat for next winter,” he mused, “but who should do the farming? I believe I’ll give Ivan and Frederick the responsibility of growing the wheat.” Ivan and Frederick were summoned for an audience with Baron Coburg.
“Ivan, you will farm on the 20-acre plot of ground and Frederick will farm the 10-acre plot,” the Baron began. “I will give Ivan 20 bushels of wheat for seed and 20 pounds of fertiliser. (Twenty pounds of fertiliser are worth two bushels of wheat.) Frederick will get 10 bushels of wheat for seed and 10 pounds of fertiliser. I will give each of you an ox to pull a plow, but you will have to make arrangements with Feyador the Plowmaker for a plow. The oxen, incidentally, are only three years old and have never been used for farming, so they should have a good 10 years of farming ahead of them. Take good care of them because an ox is worth 40 bushels of wheat. Come back next fall and return the oxen and the plows along with your harvest.”
Ivan and Frederick genuflected and withdrew from the Great Hall, taking with them the things provided by the Baron.
The summer came and went, and after the harvest Ivan and Frederick returned to the Great Hall to account to their master for the things given to them in the spring. Ivan said, “My Lord, I present you with a slightly
(from Anthony, Reece, and Hertenstein, 1995, “Accounting: Text and Cases”, p. 21)
Once upon a time many, many years ago, there lived a feudal landlord in a small province of Western Europe. The landlord, Baron Coburg, lived in a castle high on a hill. He was responsible for the well-being of many peasants who occupied the lands surrounding his castle. Each spring, as the snow began to melt, the Baron would decide how to provide for all his peasants during the coming year.
One spring, the Baron was thinking about the wheat crop of the coming growing season. “I believe that 30 acres of my land, being worth five bushels of wheat per acre, will produce enough wheat for next winter,” he mused, “but who should do the farming? I believe I’ll give Ivan and Frederick the responsibility of growing the wheat.” Ivan and Frederick were summoned for an audience with Baron Coburg.
“Ivan, you will farm on the 20-acre plot of ground and Frederick will farm the 10-acre plot,” the Baron began. “I will give Ivan 20 bushels of wheat for seed and 20 pounds of fertiliser. (Twenty pounds of fertiliser are worth two bushels of wheat.) Frederick will get 10 bushels of wheat for seed and 10 pounds of fertiliser. I will give each of you an ox to pull a plow, but you will have to make arrangements with Feyador the Plowmaker for a plow. The oxen, incidentally, are only three years old and have never been used for farming, so they should have a good 10 years of farming ahead of them. Take good care of them because an ox is worth 40 bushels of wheat. Come back next fall and return the oxen and the plows along with your harvest.”
Ivan and Frederick genuflected and withdrew from the Great Hall, taking with them the things provided by the Baron.
The summer came and went, and after the harvest Ivan and Frederick returned to the Great Hall to account to their master for the things given to them in the spring. Ivan said, “My Lord, I present you with a slightly