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
693840
446040
421260
557550
161070
2
830130
272580
260190
156114
624456
3
644280
619500
545160
408870
-0-
2168250
1338120
1226610
1122534
785526
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.
BERSTLER CONSTRUCTION COMPANY
Partial Income Statement
Year Ended December 31 2010
_________________________________________$__________________
_________________________________________$__________________
_________________________________________$__________________
Loss recognized in 2010 $_________________
BRESTLER CONSTRUCTION COMPANY
Partial Balance Sheet
December 31 2010
Current assets:
_____________________________________________________________$______________
________________________________
___________________________________$________________
Less:_______________________________$________________
_____________________________________________________________$_________________
Current liabilities:
_____________________________________________________________$_______________