Can you please help me answer this problem with a detailed solution so I understand clearly how I can answer similar problems with this one? It would be preffered if it were presented in an excel. Thank you so much in advance! Your help would be greatly appreciated.PROBLEM:The following are the transactions of a joint operation formed by A, B and C during a year:A contributed cash of $400 and merchandise costing $800.B contributed merchandise costing $1,600. Freight-in paid by B is $80C made purchases amounting to $400 using the cash contributed by A.C paid expenses of $800 using its own cashC made total sales of $3,200. All the merchandise was sold except one-half of those contributed by B.C is appointed as the manager of the joint operation. As compensation, C is entitled to a $120 salary plus bonus of 25% on profit after salary and bonus.Interest of 10% per annum is allowed to A and B's capital contributionsC is charged for the cost of any unsold inventory. Profit or loss after necessary adjustments shall be divided equallyHow much is the profit or loss after salaries but before bonus of the joint operation?

When any firm finds difficult to produce the demanded quantity of goods in market, it…

Answered: The following are the transactions of a…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Can you please help me answer this problem with a detailed solution so I understand clearly how I can answer similar problems with this one? It would be preffered if it were presented in an excel. Thank you so much in advance! Your help would be greatly appreciated.

PROBLEM:

The following are the transactions of a joint operation formed by A, B and C during a year:

A contributed cash of $400 and merchandise costing $800.
B contributed merchandise costing $1,600. Freight-in paid by B is $80
C made purchases amounting to $400 using the cash contributed by A.
C paid expenses of $800 using its own cash
C made total sales of $3,200. All the merchandise was sold except one-half of those contributed by B.
C is appointed as the manager of the joint operation. As compensation, C is entitled to a $120 salary plus bonus of 25% on profit after salary and bonus.
Interest of 10% per annum is allowed to A and B's capital contributions
C is charged for the cost of any unsold inventory. Profit or loss after necessary adjustments shall be divided equally

How much is the profit or loss after salaries but before bonus of the joint operation?

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