As of December 31, 2016, Cady Construction has one construction job for which th

Question

As of December 31, 2016, Cady Construction has one construction job for which the construction in progress (CIP) account has a balance of $25,000 and the billings on construction contract account has a balance of $14,000. Cady has another construction job for which the construction in progress account has a balance of $7,000 and the billings on construction contract account has a balance of $10,000. Indicate the amount of contract asset and/or contract liability that Cady would show in its December 31, 2016, balance sheet.

Explanation / Answer

Answer. The amount of contract asset and/or liability that Cady would show in its December 31, 2016 baancesheet.

Job CIP (Dr.) Billings (Cr.) Contract Asset or Contract Liability ? Amount Job 1 $25,000 $14,000 Asset =$11,00($25,000-$14,000) Job 2 $7,000 $10,000 Liability =$3,000($10,000-$7,000)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.