May I know the below entry whether correct?


Construction in Progress
Cash


Accounts Receivable
Billings/ Construction in Progress


Cash
Accounts Receivable


Construction Expenses
Construction in Progress
Revenue/ Long Tm Contract

( what type of account should them under?

Quote:

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Originally Posted by miumiutira

may i know the below entry whether correct?


Construction in Progress
Cash


Accounts Receivable
Billings/ Construction in Progress


Cash
Accounts Receivable


Construction Expenses
Construction in Progress
Revenue/ Long Tm Contract

( what type of account should them under?

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Prima face' they may seem correct but without some narritave and indication of debits and credits to the journal entry who can say. Wouldn't construction expenses be first debited to the construction in progress account and then the project cost be transferred to cost of sales whilst contact revenue be transferred to sales (billings)?

As to account classification some are assets, liabilities, revenue items, no doubt your text book will help