An individual has a retail business scorp however had a side job this year where he built out a small business for another individual. He included his design, labor, equipment/machines he already had and purchased some new machines for the project. He sold the finished project for a fixed amount including labor, materials, machinery and equipment.
My question is how do I record the project costs. He would not depreciate the equipment however he did not resell it either. Is the equipment contributed and purchased recorded as COGS or materials?
I am not really familiar with accounting for construction projects. Thanks for the help.
My question is how do I record the project costs. He would not depreciate the equipment however he did not resell it either. Is the equipment contributed and purchased recorded as COGS or materials?
I am not really familiar with accounting for construction projects. Thanks for the help.