construction estimating, Lecture notes of Construction management

Download construction estimating and more Lecture notes Construction management in PDF only on Docsity!

Accounting Systems

Learning Objectives • Discuss accounting system • General ledger

• (^) Accounting documents^ •^ • •^ Job ledgerEquipment ledgerBalanced sheets
  • (^) Income statements

Balance Sheet Example

Assets = Liabilities + Equity^ Asset^ Liability & Equity

Income Statement • • Record of earning and losses of a given periodPrepared at the end of the month and end of fiscal year

• (^) All transaction between balance sheets • • • (^) RevenuesExpensesNet income (Profit) Balance Sheet at End of Month 1 Income Statement for Month 2 Balance Sheet at End of Month 2

Key Relationships in the General Ledger • Assets = Liabilities + Equity

• • (^) Profit = Revenue – ExpensesProfit = Change in Equity

Information • Balance Sheet • Can the firm meet its financial obligations?

• (^) Income statement^ • •^ Assets = Liabilities + EquityIs the firm profitable?
  • Revenue = Expenses + Profit

Income Statement and Job Ledger • Revenue = Sum of revenues of each job

• • (^) Construction cost = Sum of construction cost of each jobConstruction Cost • (^) Labor
  • • • (^) EquipmentMaterialSubcontractor

Equipment Ledger • Breakdown of equipment cost by piece of equipment

... EQUIPMENT LEDGER^ EQUIP. #^ RENT AND LEASE PAYMENTS^ DEPRECIATION^ REPAIRS AND MAINTENANCE^ FUEL AND LUBRICATION^ TAXES, LICENSES, AND^ TIRES^ REPAIRS^ MAINTENANCE EQUIP. # FUEL AND LUBRICATION^ REPAIRS AND MAINTENANCE^ RENT AND LEASE PAYMENTS^ DEPRECIATION^ EQUIPMENT COSTS ALLOCATED EQUIPMENT COSTS ALLOCATED TAXES, LICENSES, AND^ INSURANCE INSURANCE^ MAINTENANCE TIRES^ REPAIRS