(Long Term Contract Reporting) 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.
|
Project |
Total |
Billings |
Cash |
Contract |
Estimated |
|
1 |
$ 560,000 |
$ 360,000 |
$340,000 |
$450,000 |
$130,000 |
|
2 |
670,000 |
220,000 |
210,000 |
126,000 |
504,000 |
|
3 |
520,000 |
500,000 |
440,000 |
330,000 |
–0– |
|
$1,750,000 |
$1,080,000 |
$990,000 |
$906,000 |
$634,000 |
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.