Monty, Inc. began work on a $6,344,000 contract in 2022 to construct an office building. Monty uses the cost-recovery method. At December 31, 2022, the balances in certain accounts were Construction in Process $1,667,000, Accounts Receivable $247,000, and Billings on Construction in Process $911,000. Indicate how these accounts would be reported in Monty's December 31, 2022, statement of financial position. (List assets in reverse order of liquidity.) Current Assets Inventories Construction in Process Less ✓ Costs in Excess of Billings Accounts Receivable Monty, Inc. Statement of Financial Position December 31, 2022 Costs in Excess of Billings $ tA 1,667,000 911,000 i $ LA 247,000 756,000

Monty, Inc. began work on a $6,344,000 contract in 2022 to construct an office building. Monty uses the cost-recovery method. At December 31, 2022, the balances in certain accounts were Construction in Process $1,667,000, Accounts Receivable $247,000, and Billings on Construction in Process $911,000. Indicate how these accounts would be reported in Monty's December 31, 2022, statement of financial position. (List assets in reverse order of liquidity.) Current Assets Inventories Construction in Process Less ✓ Costs in Excess of Billings Accounts Receivable Monty, Inc. Statement of Financial Position December 31, 2022 Costs in Excess of Billings $ tA 1,667,000 911,000 i $ LA 247,000 756,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

100%

Drop Down list is:

1- Accounts Payable

2- Accounts Receivable

3- Billings

4- Cash

5- Construction in process

6- Costs in Excess of Billings

7- Inventories

Monty, Inc. began work on a $6,344,000 contract in 2022 to construct an office building. Monty uses the cost-recovery method. At
December 31, 2022, the balances in certain accounts were Construction in Process $1,667,000, Accounts Receivable $247,000, and
Billings on Construction in Process $911,000.
Indicate how these accounts would be reported in Monty's December 31, 2022, statement of financial position. (List assets in reverse
order of liquidity.)
Current Assets
Inventories
Construction in Process
Less ✓
Costs in Excess of Billings
Accounts Receivable
Monty, Inc.
Statement of Financial Position
December 31, 2022
Costs in Excess of Billings
$
tA
1,667,000
911,000 i
$
LA
247,000
756,000

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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