acc305(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.
Project
Total Contract Price
Billings through 12/31/10
Cash Collections through 12/31/10
Contract Costs Incurred through 12/31/10
Estimated Additional Costs to Complete
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
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. (For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)
BERSTLER CONSTRUCTION COMPANY
Partial Income Statement
Year Ended December 31, 2010
$
Loss recognized in 2010
BERSTLER CONSTRUCTION COMPANY
Partial Balance Sheet
December 31, 2010
Current assets:
$
$
Less:
Current liabilities:
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