Vaneeta Construction Ltd. began operations in 2014. Construction activity for the first year follows. All contracts are with different customers, and any work remaining at December 31, 2014, is expected to be completed in 2015.

Instructions
Under the earnings approach, prepare a partial income statement and balance sheet to indicate how the above information would be reported in the financial statements. Assume that Vaneeta Construction uses the completed-contract method.

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Contract Costs Incurred through 12/31/14 $2,450,000 1,126,000 Estimated Additional Total Contract Price $3,360,00o 2,670,000 Collections through 12/31/14 $2,260,000 1,220,000 2 12/3114 $2,040,000 1,210,000 Froject $1,070,000 504,000 8 750,000 750,000 500,000 435,000 $6,780,000 $4,230,000 $3,750,000 $4,011,000 $1,574,000