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 • Job ledger • Equipment ledger • Accounting documents • Balanced sheets • Income statements Income Statement • Record of earning and losses of a given period • Prepared at the end of the month and end of fiscal year • All transaction between balance sheets • Revenues • Expenses • Net income (Profit) Balance Sheet at End of Month 1 Balance Sheet at End of Month 2 Income Statement for Month 2 Income Statem ent Exampl e © 2013 Pearson Higher Education 1 0 0 % 1 3 .9 % Profit = Revenues – Expenses Key Relationships in the General Ledger • Assets = Liabilities + Equity • Profit = Revenue – Expenses • Profit = Change in Equity Income Statement and Job Ledger • Revenue = Sum of revenues of each job • Construction cost = Sum of construction cost of each job • Construction Cost • Labor • Equipment • Material • Subcontractor Equipment Ledger • Breakdown of equipment cost by piece of equipment ... EQUIP. # RENT AND LEASE PAYMENTS EQUIPMENT LEDGER DEPRECIATION REPAIRS AND MAINTENANCE FUEL AND LUBRICATION TAXES, LICENSES, AND TIRES REPAIRS MAINTENANCE FUEL AND LUBRICATION REPAIRS AND MAINTENANCE RENT AND LEASE PAYMENTS DEPRECIATION MAINTENANCE TIRES REPAIRS EQUIP. # INSURANCE EQUIPMENT COSTS ALLOCATED EQUIPMENT COSTS ALLOCATED TAXES, LICENSES, AND INSURANCE Income Statement and Equipment Ledger • Equipment Cost = cost after allocated to each job • Equipment Cost = Sum of all costs • Rent and Lease Payments • Depreciation • Repairs and Maintenance • Fuel and Lubrication • Taxes, Licenses, and Insurance