Real Estate
Contractor Progress Billing (CIP)
Recording a milestone payment to the main contractor as construction progresses.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Construction in Progress (CIP) | Asset (+) | 500,000.00 | - |
| Accounts Payable (Contractor) | Liability (+) | - | 500,000.00 |
💡 Accountant's Note
All construction costs accumulate in the CIP account while the building is being built. CIP is a special fixed asset account — it is not depreciated until construction is complete and the building is placed into service.
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