accounting 1 assignment 494922

1 ACCT 2101 Financial Accounting Case Assignment Please read the material provided and answer the required questions. Please submit a computer printed hard copy of your work for grading. Do not forget to write your full name on the copy you submit. You may briefly discuss the case with other students, but because this is not a group assignment, you are required to write up your solutions independently and submit your individual work for grading. A duplicate of others’ work will not be acceptable. This assignment will be due in class on Monday December 2, 2013. Late submission will not be accepted. 2 Please read the following material and answer the questions. Once upon a time, 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, Baron would decide how to provide for all his peasants during the coming year. One spring, Baron was thinking about the wheat crop of the coming growing season. “I believe that 30 acres of my land, being worth 5 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.” Then, 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,” Baron began, “I will give Ivan 20 bushels of wheat for seed and 20 pounds of fertilizers. (20 pounds of fertilizers are worth 2 bushels of wheat.) Frederick will get 10 bushels of wheat for seed and 10 pounds of fertilizers. I will give each of you an ox to pull a plow, but you will have to make arrangement 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…