Guillen, Inc. began work on a $7,000,000 contract in 2014 to construct an office
ID: 2448949 • Letter: G
Question
Guillen, Inc. began work on a $7,000,000 contract in 2014 to construct an office building. Guillen uses the completed-contract method. At December 31, 2014, 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, 2014, balance sheet.
Guillen, Inc. Balance Sheet December 31, 2014
______________________
________________________________________ $________________
_______________________
_______________________ $_________________
______ __________________________________ __________________
_________________________________ $________________
Options for this Question
Current Assets
Current Liabilities
Intangible assets
Long-Term investments
Long-term liabilities
Property, plant, and equipment
Stockholders’ Equity
Total assets
Total current liabilities
Total intangible assets
Total liabilities
Total liabilities & stockholders’ equity
Total long term investments
Total long term liabilities
Total property, plant, and equipment
Total stockholders equity
Explanation / Answer
These balances in certain accounts will be shown under Current Assets in the Balance Sheet.
$1715000 + $2,40,000 + $1000000 = $2955000
Current Assets $2955000
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