An Accounting Case Essay - 604 Words

SHEPPARD’S Accounting game 1: Deyonne’s assets: 1. 400 sheep 2. 20 acres of land 3. A one-room cabin 4. A plow 5. Two carts 6. An ox Deyonne’s liabilities and deduction of assets: 1. 35 sheep 2. 3 sheep Due to the information, 20 acres of land equal 80 sheep according to the exchange rate of last year, a one-room cabin equal 3 acres of land and equal 12 sheep finally, a plow equals 2 goat and equal 2/3 sheep according to last year’s exchange rate and 2 carts which were traded with a poor acre of land equals 8 sheep plus 400 sheep. So Deyonne’s total assets are 500(2/3) sheep. Deyonne’s liabilities and assets deduction are 35 sheep plus 3 sheep, which will come to 38 sheep,†¦show more content†¦Therefore, Batonne is wealthier. Accounting game2: Deyonne’s income of current year: 80 sheep Deyonne’s loss of current year: 1 ox (equals 5 sheep) Batonne’s income of current year: 1. 20 sheep 2. 40 sheep (which were traded for 10 acres of land) 3. 5 coats (which worth 25 goats and equal 8(1/3) sheep finally) Explanations: 1. Because it is the comparison of income, the loss of Deyonne cannot be deducted from the total amount of his income . 2. Batonne traded 40 sheep for 10 acres of additional land, but the sheep derived from his income. So the 40 sheep should also be counted as his income. 3. Batonne’s wife received 25 goats due to order of sailing, which should be regarded as part of income. But the other order, which has not been realized, cannot be regarded as income. 4. As for the 18 sheep that Batonne traded for food and clothing items and 7 sheep that Deyonne did similarly, they were part of their original property. So they cannot be regarded as income. Consequently, according to the information, Deyonne’s income of last year was 80 sheep, while Batonne’s income was that 20 sheep plus 40 sheep that were traded for 10 additional land and 5 coats equaling 8(1/3) sheep. Therefore, Deyonne’s income of 80 sheep was versus Batonne’s income of 68(1/3) sheep. Deyonne’s income was greater for the pastShow MoreRelatedAccounting Case1317 Words   |  6 Pages2011 $ 5,500 -4,000 -8,500 -1,000 $ -8,000 $0 $ 30,000 $ 22,000 7,400 $ 29,400 eBook Links (3) Learning Objective: 02-04 Explain how the statement of financial position, often referred to as the balance sheet, is an expansion of the basic accounting equation. Learning Objective: 02-05 Explain how the income statement reports an enterprises financial performance for a period of time in terms of the relationship of revenues and expenses. Learning Objective: 02-06 Explain how the statement ofRead MoreCase for Accounting Class1401 Words   |  6 Pagesresultant comment letter process. 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