Percentage of Completion Entries

• Cost of construction:

(Dr) Construction in process (CIP)

(Cr) Materials, cash, payables, etc.
 

• Progress billings:

(Dr) Accounts receivable

(Cr) Billings on CIP 

• Collections:

(Dr) Cash

(Cr) Accounts receivable 

• To recognize revenue and gross profit:

Construction in process (gross profit)
Construction expenses
Revenue

• To record completion of project:

  (Dr) Billings on CIP

  (Cr) Construction in process