Ex7.8 Ace Construction Corp

2016 2017 2018 Cost incurred to date $300 $1,100 $1,500 Estimated cost $1,400 $650 $0 TOTAL estimated cost $1,700 $1,750 $1,500

% complete 1 8% 63% 100% Contract price $ 2,000.00 $ 2,000.00 $ 2,000.00 Cumulative Revenue $ 352.94 $ 1,257.14 $ 2,000.00 Less Revenue recognized previously 0 $ (352.94) $ (1,257.14)

Current Year Revenue $ 352.94 $ 904.20 $ 742.86 $ 2,000.00

Total expense $300 $800 $400

2016 Contract Assets $300 Cash $300

Accounts Receivable $350 Progress Billing $350 Cash $275 Accounts Receivable $275 Cost of sales $300 Contact Asset Bal Fig $53 Revenue $353

2017 Contract Assets $800 Cash $800 Accounts Receivable $1,200 Progress Billing $1,200 Cash $1,225 Accounts Receivable $1,225 Cost of sales $800 Contact Asset Bal Fig $104 Revenue $904

2018

Contract Assets $400 Cash $400 Accounts Receivable $450 Progress Billing $450 Cash $500 Accounts Receivable $500 Cost of sales $400 Contact Asset $343 Revenue $743 Progress Billing $2,000 Note 3 Contracts Assets $2,000

Note 3

Contract Assets Account Progress billing

Dr Cr Dr Cr 2016 $300 2016 $350 2016 $53 2016

2017 $800 2017 $1,200 2017 $104 2017 2018 $400 2018 $450 2018 $343 2018 $2,000 $2,000

Note 1 Note 2 given in the Qn given in the Qn Note 2 Note 3

Cr $6,000,000 $6,000,000 $8,000,000 $20,000,000

Note 2 Note 2 Given in the Qn Note 1 Given in the Qn Given in the Qn Note 2 Note 2

Given in the Qn Given in the Qn this reconciles with the two accounts below this reconciles with the two accounts below

Cr $1,950,000 $2,375,000 $4,175,000 $8,500,000 Note 1 Note 2Noet 2 given in the Qn given in the Qn Note 2 given in the Qn given in the Qn given in the Qn given in the QnCr $475,000 $600,000 $125,000 $1,200,000