What Is Construction in Progress?

Meaning of Chinese characters: Construction projects that are not yet completed and put into use are under construction.

Construction in progress

I. The undergraduate account calculates the value of in-building projects such as enterprise infrastructure construction and technical transformation.

Enterprise and

(One)

Public works in progress:

Construction in progress of public institutions refers to various buildings (including new construction, reconstruction, expansion, repair, etc.) and equipment installation projects that have undergone necessary expenditures but have not yet been completed for delivery.

Construction engineering

(1) When transferring fixed assets to alteration, expansion or repair, etc.

Borrow: construction in progress

Loan: Non-current asset funds-construction in progress

At the same time, according to non-current asset funds corresponding to fixed assets

Borrow: Non-current asset funds-fixed assets

Accumulated depreciation

Loans: fixed assets

(2) When paying the project price and special loan interest

Borrow: construction in progress

Loan: Non-current asset funds-construction in progress

Simultaneously,

Borrow: business expenses

other expenses

Loan: bank deposit

(3) When the project is completed and delivered,

Borrow: fixed assets

Loans: Non-current assets funds-fixed assets

Simultaneously

Borrow: Non-current asset funds-construction in progress

Loan: construction in progress

2. Equipment installation engineering

(1) Purchase equipment to be installed (double entry)

Borrow: construction in progress

Loan: Non-current asset funds-construction in progress

At the same time, according to the actual payment amount

Borrow: business expenses

Operating expenses

Loan: bank deposit

(2) Installation costs incurred

Borrow: construction in progress

Loan: Non-current asset funds-construction in progress

Simultaneously

Borrow: business expenses

Loan: bank deposit

(3) When the equipment is installed and delivered for use (double entry)

Borrow: fixed assets

Loans: Non-current assets funds-fixed assets

Simultaneously

Borrow: Non-current asset funds-construction in progress

Loan: construction in progress ^[3]

Construction case one

"Example" An enterprise builds a warehouse on its own, purchases various materials for the project at RMB 20,000, and pays a value-added tax of RMB 3,400. The actual procurement of engineering materials (including VAT) 2 RMB 10,600, the remaining materials were transferred to the company's inventory; in addition, a batch of raw materials for the company's production was also received. The actual cost was RMB 3, 000, and the value-added tax to be transferred was RMB 5,100; The salary of engineering personnel was allocated to 5 million yuan. The auxiliary production workshop of the enterprise provided the labor service expenses of 1 billion yuan to the project. The project was completed and delivered for use. Relevant accounts are processed as follows: When purchasing materials for construction in progress:

Borrow: construction materials 2 3 4 0 0 0

Loan: bank deposit 2 3 4 0 0 0

When receiving engineering materials:

Borrow: construction in progress-warehouse 2 1 0 6 0 0

Loan: construction materials 2 1 0 6 0 0

When receiving raw materials:

Borrow: construction in progress-warehouse 30,000

Loan: Raw materials 3 0 00 0

When allocating engineering staff salary:

Borrow: construction in progress-warehouse 5 0 0 0 0

Loan: payroll payable to employees-salary 5 0 0 0 0

When the auxiliary workshop provides labor expenses for the project:

Borrow: construction in progress-warehouse 1 0 0 0 0

Loan: production cost-auxiliary production cost 1 0 0 0 0

When the project is completed and delivered:

Borrow: fixed assets 3 0 5 7 0 0

Loan: construction in progress-warehouse 3 0 5 7 0 0

When the remaining engineering materials are turned into enterprise inventory:

Borrow: raw materials 2 0 0 0 0

Taxes payable-VAT payable (input tax) 3 4 0 0

Loan: construction materials 2 3 4 0 0

Construction case two

"Example" On April 1, 2007, an enterprise purchased a batch of construction materials for self-operated projects, valued at 5000 yuan, and the value-added tax was 850 yuan. At the end of June, the batch of construction materials was impaired, and the amount of impairment was 50,000 yuan. On July 10, all the project materials were received. On November 15, the construction of the project was completed. In order to build the fixed asset, a construction worker's salary of RMB 4,000 was also paid, and a loan cost of RMB 25,000 was also incurred, which met the capitalization conditions. On December 5th, the company used the completed construction projects for joint load trial production, which consumed 1,000 yuan of raw materials and paid a joint trial production fee of 5000 yuan. The products produced were transferred at actual costs. As inventory goods. On December 20, the acceptance of the construction in progress was completed and transferred to fixed assets. The related accounts are processed as follows:

When purchasing engineering materials:

Borrow: construction materials 5 8 5 0 0 0

Loan: bank deposit 5 8 5 0 0 0

When impairment occurs:

Borrow: asset impairment loss 5 0 0 0 0

Loan: provision for impairment of construction materials 5 0 0 0 0

When receiving engineering materials:

Borrow: construction in progress 5 3 5 0 0 0

Provision for impairment of engineering materials 5 0 0 0 0

Loan: construction materials 5 8 5 0 0 0

When paying workers' wages:

Borrow: construction in progress 4 0 0 0 0

Loan: payable to employees-salary 4 0 0 0 0

When borrowing costs are capitalized:

Borrow: construction in progress 2 5 0 0 0

Loans: long-term loans 2 5 0 0 0

When performing combined load test:

Borrowing: construction in progress-expenses to be amortized 1 5 0 0 0

Credit: raw materials 1 0 0 0 0

Bank deposit 5 0 0 0

When a trial product is turned into an inventory product:

Borrow: Inventory items 1 5 0 0 0

Loan: construction in progress-expenses to be amortized 1 5 0 0 0

When construction in progress is converted to fixed assets:

Borrow: fixed assets 6 0 0 0 0 0

Loan: construction in progress 6 0 0 0 0 0