Fraternal Brothers provides consulting services on contract for a standard hourly rate of $100 per hour. The contracts allow the company to invoice the client evenly during the contract period. The company??s average cost is $70/hour. At the end of December 31, 2013, its fiscal year-end, the company had the following projects still in progress:

*Amounts reflected on the balance sheet in the item ??Accounts receivable and accrued revenue.??

Required:Identify any errors or likely errors in Fraternal Brothers??s revenue recognition for their contracts.

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Project Contracted Budget Budgeted start date completion hours in Hours % total revenue Revenue Billed Accrued Client (y/m/d) date to date complete @ $100/hr recorded to date revenue* contract Alpha 2013/2/5 2015/2/5 14,580 14,000 96.0 $1,458,000 $1,400,000 $ 656,100 $ 743,900 Beta 2013/2/28 2014/2/29 6,000 5,230 87.2 600,000 523,000 504,000 19,000 Chi 2013/4/9 2014/4/9 9,600 9,500 99.0 960,000 950,000 700,800 249,200 Delta 2013/5/19 2014/5/19 3,600 2,500 69.4 360,000 250,000 223,200 26,800 Epsilon 2013/6/28 2014/6/28 5,440 6,170 113.4 544,000 544,000 277,440 266,560 Phi 2013/8/7 2013/10/6 750 160 21.3 75,000 16,000 16,000 Gamma 2013/9/16 2014/9/16 4,400 1,960 44.5 440,000 196,000 127,600 68,400 Eta 2013/10/26 2013/11/25 350 150 42.9 35,000 15,000 15,000 44,720 39,670 88.7 $4,472,000 $3,894,000 $2,489,140 $1,404,860