v3.22.2.2

Accounts Receivable | 9 Months Ended
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Sep. 30, 2022
Accounts Receivable And Work In Process Table Abstract |
Accounts Receivable and Work in Process [Table Text Block] | Note 4 – Accounts Receivable Accounts receivable as of September 30, 2022 and December 31, 2021 consists of the following:
Description |  | September 30, 2022 |  |  | December 31, 2021 |
Accounts receivable on completed contracts |  | $ | 32,723 |  |  | $ | 33,772 |
Costs and estimated earnings on contracts in progress |  |  | 664,915 |  |  |  | 298,121 |
Total |  | $ | 697,638 |  |  | $ | 331,893 |
Costs and Estimated Earnings on projects are recognized on the percentage of completion method for work performed on contracts in progress at September 30, 2022 and December 31, 2021. Because of growth in the last quarter of operations, the Company experienced a large number of commercial projects that were unfinished at the end of the quarter and therefor created a large backlog of excess billings over completed segments of contracts. All or most of these contracts will be completed before the end of the year and therefore will be reported as sales. The Company records contracts for future payments based on contractual agreements entered into at the inception of construction contracts. Amounts are payable from customers based on milestones established in each contract. Larger contracts are billed and recorded in advance and unearned profits are netted against the billed amounts such that accounts receivable reflect current amounts due from customers on completed projects and amounts earned on projects in process are reflected in the balance sheet as costs and estimated earnings in excess of billings on contracts in progress. Excess billings on contracts in process are recorded as liabilities and were $545,435 at September 30, 2022 and $268,435 at December 31, 2021.

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