Medieval Accounting


Ivan-Balance Sheet-Beginning
(in Bushels of Wheat)
Assets Liabilities and Owner's Equity
Seed 20
Fertilizer 2
Ox 40
Land 100 Baron's Equity 162
Total 162 Total 162





Frederick-Balance Sheet-Beginning
(in Bushels of Wheat)
Assets Liabilities and Owner's Equity
Seed 10
Fertilizer 1
Ox 40
Land 50 Baron's Equity 101
Total 101 Total 101




Ivan-Income Statement
(in Bushels of Wheat)

Wheat 243
Production Expenses
Seed 20
Fertilizer 2
Ox Usage 4
Plow Usage 3 29
Earnings 214
Owner Withdrawal 20
Income to Retained Earnings 194




Frederick-Income Statement
(in Bushels of Wheat)
Wheat 138
Production Expenses
Seed 10
Fertilizer 1
Ox Usage 4
Plow Usage 1 16
Earnings 122
Owner Withdrawal 30
Income to Retained Earnings 92




Ivan-Balance Sheet-End
(in Bushels of Wheat)
Assets Liabilities and Owner's Equity
Seed 223 Liabilities (Plow) 3
Ox 36 Baron's Equity
Land 100 Contributed 162
Retained 194
Total 359 Total 359



Frederick-Balance Sheet-End
(in Bushels of Wheat)
Assets Liabilities and Owner's Equity
Seed 105
Ox 36 Baron's Equity
Plow 2 Contributed 101
Land 50 Retained 92
Total 193 Total 193




Frederick-Statement of Cash Flows
(in Bushels of Wheat)
Indirect Method
Operating Activities
Net Income (Wheat seed)

122

Plus-Non Wheat Outlays
Ox Usage

4

Plow Usage 1
Decrease in Fertilizer Inventory 1
Net Cash Flow from Operations 128
Investing Activities
Capital Expenditures (plow) (3)
Net Cash Flow from Investing Activities (3)
Financing Activities
Baron Withdrawal (30)
Net Cash Flow from Investing Activities (30)
Increase (decrease) in Wheat 95
Wheat Beginning of Period 10
Wheat End of Period 105

Can you create a statement cash of cash flows for Ivan? How would the liability that Ivan created with the Plowmaker affect his cash flows for the period.




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Professor Omer