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THE PERRYCOMPANY OF 7TH AVENUE, INC. NOTES TO REVIEWED FINANCIAL STATEMENTS DECEMBER 31, 2015
COSTS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
THE PERRY COMPANY
NOTE 5:
The Company utilizes the percentage-of-completion method based on the various segments of the contract. The following is a summary of contracts in progress at December 31, 2015.
Costs incurred on uncompleted contracts Estimated earnings
Less: Billings to date
These amounts are included in accompanying balance sheet under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts included as a current asset
Billings in excess of costs and estimated earnings on uncompleted Contracts included as a current liability
DUE TO STOCKHOLDER
$
$31,734,989
2,564,999 34,299,988 34,866,444
$ (566,456)
138,761
(705,217) $ (566,456)
NOTE 6:
NOTE 7:
As of December 31, 2015 the Company had an unsecured promissory note totaling $170,174, payable no later than January 2016 with a 3 % per annum interest rate due to a stockholder. Interest accrued to the stockholder in 2015 was $5,755.
OPERATING LEASES
Two of the major shareholders that own 90% of the Company own all of the outstanding common stock of a related company, whose principal activity is leasing land and buildings. The Company rents land and office facilities from the related company on a 5-year lease ending November 30, 2017.
Terms of the lease calls for monthly rent payments of $4,000 base rent plus applicable sales tax (currently 7%). The lease terms require for the base rent to increase by 3% per year, plus any increases to real estate taxes. The lease expires in November 2017. Rent expense related to this operating facility for the year ended December 31, 2015 was $57,138.
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