Ask Experts Questions for FREE Help !
Ask
    miumiutira's Avatar
    miumiutira Posts: 11, Reputation: 1
    New Member
    		  
    #1

    Jun 6, 2012, 04:10 PM
    Construction account
    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?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
    		  
    #2

    Jun 6, 2012, 05:42 PM
    Quote Originally Posted by miumiutira View Post
    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?
    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
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Post-Construction Cleaning and Pre-Construction Cleaning Pricing [ 7 Answers ]

I have a cleaning company and will need to come up with a price per unit 1 bedroom post construction cleaning and pre construction cleaning> I will be entering the unit 2 times I'm not sure what to charge?

Construction methodology for the construction of clubhouse [ 2 Answers ]

Is bank account a real type of account or personal account [ 2 Answers ]

Types of account are three types that is real account,nominal account and personal account.I need to know, is bank account a real account or personal nature. Please also need to know about type of accountprovision for bad debt and provision for taxation

View more questions Search