ONeil, Inc. began work on a $7,000,000 contract in 2012 to construct an office building. ONeil uses

Question:

O’Neil, Inc. began work on a $7,000,000 contract in 2012 to construct an office building. O’Neil uses the percentage-of-completion method. At December 31, 2012, the balances in certain accounts were Construction in Process $2,450,000; $240,000; and Billings on Construction in Process $1,400,000. Indicate how these accounts would be reported in O’Neil’s December 31, 2012, balance sheet.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...