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Ivan & Frederick

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1. For each farm, prepare balance sheets as of the beginning and end of the growing season and an income statement for the season.

Balance Sheet at Beginning of Growing Season

BALANCE SHEET: IVAN (Beginning of Season) | | | | | | | | | | | | | | ASSETS | Beg. of Season | | | LIABILITIES & EQUITY | Beg. of Season | Current Assets | | | | Current Liabilities | | | Seed | 20 | | | | | | | Fertilizer (20 lbs.=2 bushes) | 2 | | | | | | Total Current Assets | 22 | | | Total Current Liabilities | 0 | | | | | | | | | Fixed Assets | | | | Shareholders Equity | | | Land (5 bushels of wheat per acre) | 100 | | | | Seed from Baron | 20 | | Ox (1 ox= 40 bushes of wheat) | 40 | | | | Fertilizer from Baron | 2 | | Plow | 0 | | | | Ox from Baron | 40 | | | | | | | Land from Baron | 100 | | | | | | | | | Total Net Fixed Assets | 140 | | | Total Equity | 162 | | | | | | | | | TOTAL ASSETS | 162 | | | TOTAL LIABILITIES & EQUITY | 162 |

BALANCE SHEET: FREDERICK (Beginning of Season) | | | | | | | | | | | | | | ASSETS | Beg. of Season | | | LIABILITIES & EQUITY | Beg. of Season | Current Assets | | | | Current Liabilities | | | Seed | 10 | | | | | | | Fertilizer (20 lbs.=2 bushes) | 1 | | | | | | Total Current Assets | 11 | | | Total Current Liabilities | 0 | | | | | | | | | Fixed Assets | | | | Shareholders Equity | | | Land (5 bushels of wheat per acre) | 50 | | | | Seed from Baron | 10 | | Ox (1 ox= 40 bushes of wheat) | 40 | | | | Fertilizer from Baron | 1 | | Plow | 0 | | | | Ox from Baron | 40 | | | | | | | Land from

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