Long-Term Contract Reporting) Berstler Construction Company began operations in 2010. Construction activity for the first year is shown below. All contracts are with different customers, and any work remaining at December 31, 2010, is expected to be completed in 2011.

Instructions

Prepare 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-contract method.

Contract Costs Incurred through 12/31/10 Cash Estimated Billings through 12/31/10 $ 360,000 Collections through 12/31/10 Additional Costs to Complete Total Contract Price Project $ 560,000 $340,000 $450,000 $130,000 670,000 5 500,000 440,000 330,000 -0- $1,750,000 $1,080,000 $990,000 $906,000 $634,000