hard · Financial Accounting accounting-cycle-financial-statements
A $30,000,000 contract has 9,000,000 in costs incurred in Year 1. Total estimated costs are $24,000,000. Billings are $10,000,000.
What is the entry to close the CIP and Billings accounts at the *very end* of the project (assuming it finished on budget and fully billed)?
- Debit Revenue $30,000,000, Credit CIP $30,000,000
- Debit Billings $30,000,000, Credit CIP $30,000,000
- Debit Cash $30,000,000, Credit Revenue $30,000,000
- Debit CIP $30,000,000, Credit Billings $30,000,000
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