Est. total contract costs= Estimated cost to complete + Est.

total contract
costs

2007: 150,000 + 450,000= 600,000

2008: 437,400 + 170,100= 607,500

2009: 607,500 + 0 = 607,500

Est. percentage complete = Costs incurred to date / Est. total contract

costs

2007: 150,000/ 600,000 = 25%

2008: 437,400 / 607,500 = 72%

2009: 607,500 / 607,500 = 100%

Contract price= Estimated total revenue= 675,000

Revenue recognizable = Estimated total revenue (Contract price) * Est.

percentage complete

2007: 25% * 675,000= 168,750

2008: 72% * 675,000= 486,000

2009: 100% * 675,000= 675,000

Rev. recognized currently = Revenue recognizable - Revenue recognized in

prior periods

2007: 168,750 - 0= 168,750

2008: 486,000 - 168,750 = 317,250

2009: 675,000 - 486,000 = 189000

Income recognized currently = Rev. recognized currently - Costs incurred

currently

2007: 168,750- 150,000= 18,750

2008: 317,250 - 287,400 = 29,850

2009: 189,000- 170,100 = 18,900