Would The Signing Of A Contract Be Recorded In A Construction Company’s Accounting Journal?
May 15th, 2009 | 
Author: Working on some accounting homework; I’m not sure how to journalize the signing of a contract for an imaginary construction company. Any accounting majors out there who can tell me whether the signing of a $250,000 contract for work set to begin at a future date would be recorded in the general journal? If yes, which accounts are debited and credited? Thanks a bunch.
Posted in BBA Hons | 
Tags: Accounting, Company's, Construction, Contract, Journal, Recorded, Signing, Would
you only need to make a memo entry, not a journal entry. take it up in your general journal. there’s no basis for recording a receivable nor income since there has been no substantial performance of services or delivery of goods yet.
No, at the point of signing a contract, you don’t record any entries in the general journal.