2015 2016 2017

PERCENTAGE OF COMPLETION METHOD

calculation
contract price 8,400,000 8,400,000 8,400,000
estimated total cost 6,400,000 7,300,000 7,300,000
gross profit 2,000,000 1,100,000 1,100,000

actual cost 2,880,000 5,110,000 7,300,000

estimated total cost 6,400,000 7,300,000 7,300,000
PoC 45% 70% 100%

calculated revenue & gross profit/(loss)

revenue 3,780,000 2,100,000 2,520,000
actual cost 2,880,000 2,230,000 2,190,000
gross profit/(loss) 900,000 (130,000) 330,000

journal entries
CIP 2,880,000 2,230,000 2,190,000
cash/AP (2,880,000) (2,230,000) (2,190,000)

AR 3,200,000 3,500,000 1,700,000

PB (3,200,000) (3,500,000) (1,700,000)

CIP 900,000 (130,000) 330,000

construction expense 2,880,000 2,230,000 2,190,000
revenue from long term contract (3,780,000) (2,100,000) (2,520,000)

PB 8,400,000
CIP (8,400,000)

BALANCE SHEET
current assets
account receivables 3,200,000 6,700,000 8,400,000

inventories
contruction in process 3,780,000
less: progress billing (3,200,000)
cost & gross profit in excess of progress billing 580,000

current liabilities
progress billing 6,700,000
less: contruction in process (5,880,000)
progress billing in excess of contruction in process 820,000

INCOME STATEMENT
revenue from long term contract 3,780,000 2,100,000 2,520,000
construction expense (2,880,000) (2,230,000) (2,190,000)
gross profit/(loss) 900,000 (130,000) 330,000

COST RECOVERY METHOD

journal entries
CIP 2,880,000 2,230,000 2,190,000
cash/AP (2,880,000) (2,230,000) (2,190,000)

AR 3,200,000 3,500,000 1,700,000

PB (3,200,000) (3,500,000) (1,700,000)

CIP 1,100,000
construction expense 2,880,000 2,230,000 2,190,000
revenue from long term contract (2,880,000) (2,230,000) (3,290,000)

PB 8,400,000
CIP (8,400,000)

BALANCE SHEET
current assets
account receivables 3,200,000 6,700,000 8,400,000

current liabilities
progress billing 3,200,000 6,700,000
less: contruction in process (2,880,000) (5,110,000)
progress billing in excess of contruction in process 320,000 1,590,000

INCOME STATEMENT
revenue from long term contract 2,880,000 2,230,000 3,290,000
cost of construction 2,880,000 2,230,000 2,190,000
gross profit - - 1,100,000
 2015 2016 2017
PERCENTAGE OF COMPLETION METHOD
calculation
contract price 1,900,000 1,900,000 1,900,000
estimated total cost 1,500,000 2,000,000 2,100,000
gross profit/(loss) 400,000 (100,000) (200,000)

actual cost 300,000 1,200,000 2,100,000

estimated total cost 1,500,000 2,000,000 2,100,000
PoC 20% 60% 100%

calculated revenue & gross profit/(loss)

revenue 380,000 760,000 760,000
actual cost 300,000 900,000 900,000
cost (adjusted) 40,000 (40,000)
gross profit/(loss) 80,000 (180,000) (100,000)

journal entries
CIP 300,000 900,000 900,000
cash/AP (300,000) (900,000) (900,000)

AR 300,000 800,000 750,000

PB (300,000) (800,000) (750,000)

CIP 80,000 (180,000) (100,000)

contruction expense 300,000 940,000 860,000
revenue from long term contract (380,000) (760,000) (760,000)

PB TDK BLH TUTUP KRN PROJECT BLM SELESAI (PB

CIP TDK SAMA DGN CIP)

BALANCE SHEET
current assets
account receivables 300,000 1,100,000 1,850,000

inventories
contruction in process 380,000 1,100,000 1,900,000
less: progress billing (300,000) (1,100,000) (1,850,000)
cost & gross profit in excess of progress billing 80,000 - 50,000

INCOME STATEMENT
revenue from long term contract 380,000 760,000 760,000
contruction expense (300,000) (940,000) (860,000)
gross profit/(loss) 80,000 (180,000) (100,000)

COST RECOVERY METHOD

journal entries
CIP 300,000 900,000 900,000
cash/AP (300,000) (900,000) (900,000)

AR 300,000 800,000 750,000

PB (300,000) (800,000) (750,000)

contruction expense 300,000 900,000 900,000

revenue from long term contract (300,000) (900,000) (900,000)

loss from long term contract 100,000 100,000

CIP (100,000) (100,000)

PB TDK BLH TUTUP KRN PROJECT BLM SELESAI (PB

CIP TDK SAMA DGN CIP)

BALANCE SHEET
current assets
account receivables 300,000 1,100,000 1,850,000

inventories
contruction in process 300,000 1,100,000 1,900,000
less: progress billing (300,000) (1,100,000) (1,850,000)
cost & gross profit in excess of progress billing - - 50,000

INCOME STATEMENT
revenue from long term contract 300,000 900,000 900,000
cost of construction 300,000 900,000 900,000
gross profit/(loss) - - -

other income/(expenses)
loss from long term contracts (100,000) (100,000)
 2015 2016 2017
PERCENTAGE OF COMPLETION METHOD
calculation
contract price 1,900,000 1,900,000 1,900,000
estimated total cost 1,500,000 1,800,000 2,100,000
gross profit/(loss) 400,000 100,000 (200,000)

actual cost 300,000 1,200,000 2,100,000

estimated total cost 1,500,000 1,800,000 2,100,000
PoC 20% 67% 100%

calculated revenue & gross profit/(loss)

revenue 380,000 886,667 633,333
additional cost to recognize gross loss 300,000 900,000 900,000
gross profit/(loss) 80,000 (13,333) (266,667)

journal entries
CIP 300,000 900,000 900,000
cash/AP (300,000) (900,000) (900,000)

AR 300,000 800,000 750,000

PB (300,000) (800,000) (750,000)

CIP 80,000 (13,333) (266,667)

contruction expense 300,000 900,000 900,000
revenue from long term contract (380,000) (886,667) (633,333)

PB TDK BLH TUTUP KRN PROJECT BLM SELESAI (PB

CIP TDK SAMA DGN CIP)

BALANCE SHEET
current assets
account receivables 300,000 1,100,000 1,850,000

inventories
contruction in process 380,000 1,266,667 1,900,000
less: progress billing (300,000) (1,100,000) (1,850,000)
cost & gross profit in excess of progress billing 80,000 166,667 50,000

INCOME STATEMENT
revenue from long term contract 380,000 886,667 633,333
contruction expense (300,000) (900,000) (900,000)
gross profit/(loss) 80,000 (13,333) (266,667)

COST RECOVERY METHOD

journal entries
CIP 300,000 900,000 900,000
cash/AP (300,000) (900,000) (900,000)

AR 300,000 800,000 750,000

PB (300,000) (800,000) (750,000)

contruction expense 300,000 900,000 900,000

revenue from long term contract (300,000) (900,000) (900,000)

loss from long term contract 200,000

CIP (200,000)

PB TDK BLH TUTUP KRN PROJECT BLM SELESAI (PB

CIP TDK SAMA DGN CIP)

BALANCE SHEET
current assets
account receivables 300,000 1,100,000 1,850,000

inventories
contruction in process 300,000 1,200,000 1,900,000
less: progress billing (300,000) (1,100,000) (1,850,000)
cost & gross profit in excess of progress billing - 100,000 50,000

INCOME STATEMENT
revenue from long term contract 300,000 900,000 900,000
cost of construction 300,000 900,000 900,000
gross profit/(loss) - - -

other income/(expenses)
loss from long term contracts (200,000)
 u 2015 2016 2017
PERCENTAGE OF COMPLETION METHOD
calculation
contract price 900,000 900,000 900,000
estimated total cost 600,000 600,000 610,000
gross profit 300,000 300,000 290,000

actual cost 270,000 450,000 610,000

estimated total cost 600,000 600,000 610,000
PoC 45% 75% 100%

calculated revenue & gross profit

revenue 405,000 270,000 225,000
actual cost 270,000 180,000 160,000
gross profit 135,000 90,000 65,000

journal entries
CIP 270,000 180,000 160,000
cash/AP (270,000) (180,000) (160,000)

AR 270,000 280,000 350,000

PB (270,000) (280,000) (350,000)

cash 240,000 260,000 400,000

AR (240,000) (260,000) (400,000)

CIP 135,000 90,000 65,000

contruction expense 270,000 180,000 160,000
revenue from long term contract (405,000) (270,000) (225,000)

PB 900,000
CIP (900,000)

BALANCE SHEET
current assets
account receivables 30,000 50,000 -

inventories
contruction in process 405,000 675,000
less: progress billing (270,000) (550,000)
cost & gross profit in excess of progress billing 135,000 125,000

current liabilities
progress billing
less: contruction in process
progress billing in excess of contruction in process
INCOME STATEMENT
revenue from long term contract 405,000 270,000 225,000
contruction expense (270,000) (180,000) (160,000)
gross profit 135,000 90,000 65,000

COST RECOVERY METHOD

journal entries
CIP 270,000 180,000 160,000
cash/AP (270,000) (180,000) (160,000)

AR 270,000 280,000 350,000

PB (270,000) (280,000) (350,000)

cash 240,000 260,000 400,000

AR (240,000) (260,000) (400,000)

CIP 290,000
contruction expense 270,000 180,000 160,000
revenue from long term contract (270,000) (180,000) (450,000)

PB 900,000
CIP (900,000)

BALANCE SHEET
current assets
account receivables 30,000 50,000 -

inventories
contruction in process 270,000
less: progress billing (270,000)
cost & gross profit in excess of progress billing -

current liabilities
progress billing 550,000
less: contruction in process (450,000)
progress billing in excess of contruction in process 100,000

INCOME STATEMENT
revenue from long term contract 270,000 180,000 450,000
cost of construction 270,000 180,000 160,000
gross profit - - 290,000
900,000
610,000
290,000