3. CONTRACT ACCOUNTING AND ACCOUNTS RECEIVABLE

12 Months Ended

Dec. 31, 2011

Trade and Other Accounts Receivable, Policy [Policy Text Block]

3. CONTRACT ACCOUNTING AND ACCOUNTS RECEIVABLE

Costs in excess of billings on uncompleted contracts represent accumulated contract costs that exceeded billings and/or cash received on uncompleted contracts accounted for under the completed contract method (See Note 1).

There were $0 and $7,472 of costs in excess of billings on uncompleted contracts at December 31, 2011 and 2010, respectively all of which were for a contract accounted for using the completed contract method of accounting (See Note 1).

At December 31, 2010, costs in excess of billings on uncompleted contracts consisted of the following for contracts using the completed contract method of accounting:

Uncompleted contract costs	$	35,472
Less: Billings and/or cash receipts on uncompleted contract		(28,000	)
Costs in excess of billings on uncompleted contracts	$	7,472

Costs and estimated earnings in excess of billings on uncompleted contracts represent accumulated contract costs that exceeded billings and/or cash received on uncompleted contracts accounted for under the percentage completion contract method (See Note 1).  There were no such contracts as of December 31, 2010.

At December 31, 2011, costs and estimated earnings in excess of billings on uncompleted contracts consisted of the following for contracts using the percentage of completion method of accounting:

Revenues Recognized	$	302,378
Less: Billings or cash receipts on uncompleted contracts		(259,798	)
Costs and estimated earnings in excess of billings on uncompleted contracts	$	42,580

Billings in excess of costs on uncompleted contracts represents billings and/or cash received that exceed accumulated contract costs on uncompleted contracts accounted for under the completed contract method (See Note 1).  There were no such contracts at December 31, 2011.

At December 31, 2010, billings in excess of costs on uncompleted contracts consisted of the following for contracts using the completed contract method of accounting:

Billings and/or cash receipts on uncompleted contract	$	22,505
Less: Uncompleted contract costs		(1,336	)
Billings in excess of costs on uncompleted contracts	$	21,169

Billings in excess of costs and estimated earnings on uncompleted contracts represents billings and/or cash received that exceed accumulated revenues recognized on uncompleted contracts accounted for under the percentage of completion contract method (See Note 1).

At December 31, 2011, billings in excess of costs and estimated earnings on uncompleted contracts consisted of the following for contracts accounted for using the completed contract method of accounting:

Billings and/or cash receipts on uncompleted contract	$	1,743,753
Less: Revenues recognized		(1,640,832	)
Billings in excess of costs and estimated earnings on uncompleted contracts	$	102,921

At December 31, 2010, billings in excess of costs and estimated earnings on uncompleted contracts consisted of the following for contracts using the percentage completion contract method of accounting:

Billings and/or cash receipts on uncompleted contract	$	89,165
Less: Revenues recognized		(83,364	)
Billings in excess of costs and estimated earnings on uncompleted contracts	$	5,801

The Company records accounts receivable related to its construction contracts and its design services, based on billings or on amounts due under the contractual terms.  The allowance for doubtful accounts is based upon the Company’s policy.  Accounts receivable throughout the year may decrease based on payments received, credits for change orders, or back charges incurred.

At December 31, 2011 and 2010, accounts receivable were as follows:

	December 31, 2011			December 31, 2010
Accounts receivable	$	1,472,716		$	71,432
Less: Allowance for doubtful accounts		(27,742	)		(25,467	)
Accounts receivable, Net	$	1,444,974		$	45,965

Bad debt expense for 2011 and 2010 was $14,488 and $4,687, respectively.