Question

Guillen, Inc. began work on a $7,000,000 contract in 2020 to construct an office building. Guillen uses the completed-contract method. At December 31, 2020, the balances in certain accounts were Construction in Process $1,715,000, Accounts Receivable $240,000, and Billings on Construction in Process $1,000,000.Indicate how these accounts would be reported in Guillen’s December 31, 2020, balance sheet.

Answer 1

Answer:

31 Dec balance sheet

Construction in process $1715000 Asset Non current Asset

Accounts receivable $240000 Asset Current asset

Billings on contract in process $1000000 Liability non current liability

Explanation: