Q: As Costs in Excess of Billings were represented in the M-1, line 6a, are Billings in Excess of Costs represented somewhere in the M-1?
A: To clarify after misinterpreting the question in the Question and Answer period, note that Statement 6 referenced at Line 6a on Schedule M-1 states "Earned Revenue on Uncompleted contracts" in the amount of $307,866. The "Cost Incurred on Uncompleted Contracts" of $184,720 associated with the "Earned Revenue on Uncompleted Contracts" is reported at Line 4a (the line is titled Depreciation but is used for any expenses recorded on the books but not included on the Schedule K). The clarification of this "Schedule M-1 depreciation not on the Schedule K" is noted in the Federal Supporting identifying it as the Cost Incurred on Uncompleted Contracts.
"Billing in excess of costs" is another matter altogether. There were none in this case study. It occurs when the contractor bills the customer for work not yet done. Any amount would be included on line 6a if, in a rare instance, such billings were also recorded per GAAP as revenue on the accrual financial statements and, of course, not included in the taxable revenue.
Course overview: Schedule M-1 and the Accrual Income Statement