EXERCISE 18-4 (Continued)

(b)   Construction in Process.......................................      535,000

             ($935,000 – $400,000)

                   Materials, Cash, Payables, etc..................                           535,000

        Accounts Receivable ($900,000 – $300,000)....      600,000

                Billings and Construction in Process........                           600,000

        Cash ($810,000 – $270,000)..................................      540,000

                Accounts Receivable.....................................                           540,000

        Construction Expenses........................................      535,000

        Construction in Process.......................................                           140,000

                Revenue from Long-term Contracts...........                           675,000*

        *$1,500,000 X (85% – 40%)

(c)   Gross profit recognized in:

	2004	2005	2006
Gross profit	$ –0–	$ –0–	$430,000*

        *$1,500,000 – $1,070,000