Berstler Construction Company began operations in 2012. Construction activity for the first year is shown below. All contracts are with different customers, and any work remaining at December 31, 2012, is expected to be completed in 2013.

InstructionsPrepare a partial income statement and balance sheet to indicate how the above information would be reported for financial statement purposes. Berstler Construction Company uses the completed-contractmethod.

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Cash Collections through 12/31/12 Contract Estimated Billings through 12/31/12 Costs Incurred through 12/31/12 Additional Costs to Total Contract Price Project Complete $ 560,000 $ 360,000 $340,000 $450,000 $130,000 330,000 520,000 440,000 500,000 -0- $1,750,000 $1,080,000 $990,000 $906,000 $634,000