Year 1 Year 2 Year 3

Total price 1000 1000 1000

Total Cost 900 1100 1100

Incurred during the year 360 410 330

Total Incurred 360 770 1100
Expected 540 330 0

% completion 40.0% 70.0% 100.0%

Profit/(loss) 40 -110 -30

Provision -30 30
Total 40.0 -140.0 -
Expected revenue 300
Expected cost 330
Loss -30
Year 1 2 3 Asset Amount Liabilities Amount
Total revenue 10,000 10,000 10,000 Unbilled revenue 500 Capital 10,000
Total cost 8,000 9,000 9,000 Receivable 4,000 Retained 900
Cost incurred to date 4,000 6,750 9,000 WIP 400
Cost expected 4,000 2,250 - Cash 6,000
Cost incurred for the yea 4,000 2,750 2,250
% of completion 45% 80% 100% Total 10,900 Total 10,900
Billings 4,000 4,000 2,000
Total billings 4,000 8,000 10,000
Cash receieved to date - 4,000 8,000 Asset Amount Liabilities Amount
Receivable 2,000 Capital 10000
% completed 45% 35% 20% Cash 9,000 Retained 1,000
Revenue to be recog 4,500 3,500 2,000
Cost to be recog 3,600 3,600 1,800
Profit 900 -100 200
Total 11,000 Total 11,000
Expected Rev 5,500 2,000
Expected cost 4,400 1,800
Provision 1,100 200
Asset Amount Liabilities Amount
Receivable 4,000 Capital 10,000
Cash 7,250 Retained 800
UnincurredCost 450

Total 11,250 Total 11,250

Contract Amt of contract Gross billings Retain 10% Net billings Collected Costs to
220 232,294 116,970 11,697 105,273 65,447 102,752
221 110,220 90,780 9,078 81,702 47,602 76,578
224 121,950 12,250 1,225 11,025 392 11,487
464,464 220,000 22,000 198,000 113,441 190,817

Liab
Contract Cost inc. Total Costs % Revenue Cost Profit

220 102,752 208,982 49.17% 114,214 102,752 11,462

221 76,578 85,618 89.44% 98,582 76,578 22,004
224 11,487 111,737 10.28% 12,537 11,487 1,050
225,333 190,817 34,516

Liab
Contract Cost inc. Total Costs % Revenue Cost Profit

220 102,752 208,982 50.35% 116,970 105,231 11,739

221 76,578 85,618 82.36% 90,780 70,517 20,263
224 11,487 111,737 10.05% 12,250 11,224 1,026
220,000 186,973 33,027

Total revenue Billing Cost inc. Cost est. Total cost %

220 232,294 125,000 120,000 100,000 220,000 54.55%
53.81%
 Cost est.
106,230
9,040
100,250
215,520

Asset Liab Asset Liab

Unbilled Unearned WIP Unincurred
Revenue Revenue cost
- 2,756 - -
7,802 - - -
287 - - -
8,089 2,756 - -

Asset Liab Asset Liab

Unbilled Unearned WIP Unincurred
Revenue Revenue cost
- - - 2,480
- - 6,061 -
- - 263 -
- - 6,324 2,480

Rev Cost Profit

12,492 17,249 -4,756 << Cost
8,030 13,153 -5,123 << Billing