Question: ONeil, Inc. began work on a $7,000,000 contract in 2014 to construct an office building. ONeil uses the percentage-of-completion method. At December 31, 2014, the

O’Neil, Inc. began work on a $7,000,000 contract in 2014 to construct an office building. O’Neil uses the percentage-of-completion method. At December 31, 2014, the balances in certain accounts were Construction in Process $2,450,000; Accounts Receivable $240,000; and Billings on Construction in Process $1,400,000. Indicate how these accounts would be reported in O’Neil’s December 31, 2014, balance sheet.

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