Completed-Contract Method
Broncos Construction Ltd Each of the Above Contracts Is with a Different Customer

question 70

Essay

Completed-contract method
Broncos Construction Ltd. reported the following construction activity in 2020, their first year of operations:
$\begin{array}{c}\begin{array}{c}\\\\\\\underline{\text {Contract}}\\\text {X}\\\text {Y}\\\text {Z}\\\\ \end{array}\begin{array}{c}\\\text { Total}\\\text { Contract}\\\underline{\text { Price }} \\ \$ 260,000 \\ 325,000 \\ \underline{388,000} \\\underline{ \$ 973,000} \\\end{array}\begin{array}{c}\\\text {Billings }\\\text {through}\\\underline{12 / 31 / 17 }\\\$ 170,000 \\130,000 \\\underline{388,000} \\\underline{\$688,000} \\\end{array}\begin{array}{c}\text {Cash}\\\text {collections}\\\text { through}\\\underline {12 / 31 / 17 }\\ \$ 155,000 \\ 130,000 \\ \underline{ 316,000} \\ \underline{ \$ 601,000 }\end{array}\begin{array}{c}\text {Costs}\\\text {Incurred}\\\text { through}\\\underline{12 / 31 / 17 }\\ \$ 182,000 \\ 100,000 \\\underline{ 252,000} \\ \underline{ \$ 534,000 }\end{array}\begin{array}{c}\text {Estimated}\\\text {Additional}\\\text {Costs to}\\\underline{\text {Complete}}\\\$ 63,000 \\247,000\\\underline{-0-}\\\underline{\$ 310,000}\end{array}\end{array}$

Each of the above contracts is with a different customer, and any work remaining at December 31, 2020 is expected to be completed in 2021.
Instructions
Prepare a partial income statement and a partial statement of financial position to indicate how the above contract information would be reported. Broncos use the completed-contract method.

Grasp the concept of self-regulation and its importance in adapting to various circumstances.

Comprehend the accuracy of self-evaluation in goal setting.

Explain the cognitive evolution and functionality in decision making and behavior facilitation.

Distinguish between intrinsic and extrinsic motivation and their impact on confidence.

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Definitions:

Problem-Solving Skills

The ability to identify, define, and resolve problems through the application of appropriate strategies and critical thinking.

Cognitive

Relating to mental processes such as perception, memory, thinking, and problem-solving.

Psychodynamic Perspective

A theory in psychology that emphasizes unconscious psychological processes and contends that childhood experiences are crucial in shaping adult personality.

Inner Forces

The internal drives, desires, or motivations that guide or influence an individual's behavior and decisions.