2014-154A. - Laserfiche WebLink

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MANCIL'S TRACTOR SERVICE, INC. Notes to Financial Statements December 31, 2013 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue and Cost Recognition (continued) Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, equipment use, supplies and engineering fees. Selling, general and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance,job conditions, and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. The asset, "Costs and estimated earnings in excess of billings on uncompleted contracts", represents revenues recognized in excess of amounts billed on said construction contracts. The liability, "Billings in excess of costs and estimated earnings on uncompleted contracts",represents amounts billed in excess of revenues recognized on said construction contracts. Underbillins The asset, "Costs and estimated earnings in excess of billings on uncompleted contracts" is comprised of under billings on various jobs at December 31, 2013. All underbillings were billed and approved for payment subsequent to December 31,2013. Joint Ventures In 2013, one venture held a general contractor's (GC) license issued by the State of Florida and qualified the Company during 2013 in order to expand the selection of projects that the Company could bid. In exchange for qualifying the Company, the GC was paid $1,000 per month from January through November and $1,500 per month beginning in December 2013 for the qualification fee. A total of $12,500 was paid for the year ended December 31,2013 and was included in total license fees. Advertising The Company expenses advertising costs as they are incurred. Advertising expenses for the year ended December 31, 2013 were $ 8,559. Summarized Financial Information for 2012 The financial information for the year ended December 31, 201.2,presented,for comparative purposes, is not intended to be a complete financial statement-presentation. Accordingly, such information should be read in conjunction with the Company's reviewed financial statements for the year ended December 31, 2012,from which the summarized information was derived. - 11 -