long term contract reporting 459144

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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