Guillen, Inc. began work on a $7,018,000 contract in 2012 to construct an office
ID: 2380991 • Letter: G
Question
Guillen, Inc. began work on a $7,018,000 contract in 2012 to construct an office building. Guillen uses the completed-contract method. At December 31, 2012, the balances in certain accounts were construction in process $1,723,900; accounts receivable $257,500; and billings on construction in process $1,018,600. Indicate how these accounts would be reported in Guillen's December 31, 2012, balance sheet.
Current assets $ Inventories $ Less:Guillen, Inc. began work on a $7,018,000 contract in 2012 to construct an office building. Guillen uses the completed-contract method. At December 31, 2012, the balances in certain accounts were construction in process $1,723,900; accounts receivable $257,500; and billings on construction in process $1,018,600. Indicate how these accounts would be reported in Guillen's December 31, 2012, balance sheet.
Explanation / Answer
current assets = cash + inventories + receivables
current assets = 1,018,600 + 1,723,900 + 257,500 = 3000000
invenories = 1,723,900
after less = 1276100
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