Find what could be the total final payment

Assignment Help Accounting Basics
Reference no: EM13861898

The contract between Ajax Construction Co. and Mr. Jones specifies that the contractor will bill Mr. Jones at the end of each month for the amount of work finished that month. Mr. Jones will then pay Ajax a specified percentage of the bill the same day. The accumulated retainage is to be paid one month after project completion. The latest cumulative billing was 5 million, of which Ajax has actually received 4.5 million. The project is to be finished two months from now. Ajax estimated the bill for the remaining two months will be 100,000 and 50,000. Mr. Jones, being short of cash at present, proposed the following alternative: Rather than follow the contract and make the three payments required, he will make one final payment (for the two months' work plus the retainage) five months from now. Mr Jones will also pay a 4% monthly interest rate because of the delay in payment.

Find what could be the total final payment according to the actual contract and the new final payment according to the new proposal. Should the contractor accept the new proposal? Why?

Reference no: EM13861898

Questions Cloud

What are the basic network management functions : (1) What are the basic network management functions: OAMP? (2) Describe what are in SNMPv1
Large data sets : To complete this assignment you must submit an electronic copy to BlackBoard by the due date. Download the starter files. To download the files from Google Drive, click the download button -- do not open the files in Google. Please follow the naming ..
Value of the new division align with the company''s mission : value of the new division align with the company's mission and vision
Java programming skills : Write a program that will play rock, paper, scissors against them, but since we are annoyed at this challenge, write it in such a way that it can never lose. However, it must be able to tie so that they dont get TOO suspicious. In your main, ask the ..
Find what could be the total final payment : Find what could be the total final payment according to the actual contract and the new final payment according to the new proposal. Should the contractor accept the new proposal? Why?
How is your company structured or organized : Can you tell us a bit about yourself and your career path to date? Can you describe a typical workday for yourself? Can you describe how your company created its mission and vision statements and how often they are reviewed? What does your organizati..
What is general characteristics of invertebrates : What is general characteristics of invertebrates
What computer-assisted audit technique would be effective : What computer-assisted audit technique would be effective in helping Draker determine whether Palitt"s vendor database had actually been falsified?
Opportunity to converse on a project management topic : Would your strategy to win business and maintain positive costumer relations involve submitting as many proposals as possible with the goal of eventually winning as much business as possible and would you decide only to respond to those RFP's that ..

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the budgeted overhead rate for the company

What is the budgeted overhead rate for the company?

  Compute dow earnings per share problem

On February 28, 2009, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31,2009, was $2,100,000. The income tax rate is 40%.

  The equipments salvage value is zero suzuki usesstraight

suzaki manufacturing company is considering three new projectseach requiring an equipment investment of 22000.

  Cost of common stock equity ross textiles wishes to measure

cost of common stock equity ross textiles wishes to measure its cost of common stock equity. the firms stock is

  When a firm uses the allowance method to provide for losses

On December 31, prior to adjustments, the balance of Accounts Receivable is $16,000 and Allowance for Doubtful Accounts has a credit balance of $95. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the e..

  Finding out the potential conflicts

What potential conflicts can you see and how could Bill & Mary remedy the situation?

  The transactions below relate to xyz delivery company

the transactions below relate to xyz delivery company. indicate the effect of each transaction on the accounting

  Problem related to the economic trade

Explain the various impacts of an import tariff in small nations vs. large nations. What are the three main reasons governments prefer using a tariff to restrict imports versus quotas?

  Explain how manufacturing costs flow through these accounts

1. a manufacturing company makes the products that it sells. briefly identify and define the cost elements that are

  Talboe company makes wheels which it uses in the production

talboe company makes wheels which it uses in the production of childrens wagons. talboes costs to produce 230000 wheels

  Determining loss contingency

Orange Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's asset in that country. If expropriation is reasonably possible, a loss contingency should be:

  Prepare the entry to record bad debts expense

Wilton, Inc. had net sales in 2012 of $1,400,000. At December 31, 2012, before adjusting entries, the balances in selected accounts were: Accounts Receivable $250,000 debit, and Allowance for Doubtful Accounts $2,400 credit. Wilton estimates that ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd