Bearing Construction Company began operations in 2014. Construction activity for the first year is shown below. All contracts are with different customers, and any work remaining at December 31, 2014, is expected to be completed by the end of 2015.

Instructions
Prepare a partial income statement and balance sheet to indicate how the above information would be reported for financial statement purposes. Bearing Construction Company uses the completed-contractmethod.

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Contract Collections Costs Incurred Additional through 12/31/14 Cash Estimated Total Billings Contract through through Project P 12/31/14 12/31/14 X 450,000 80,000 70,000 200,000 200,000 180,000 360,000 210,000 210,000 $1,010,000 $490,000 $460,000 Costs to Complete $276,500 $115,000 191,000 79,000 310,000 $586,500 $385,000