Blossom Construction Company began operations on January 1, 2020. During the year, Blossom entered into a non-cancellable contract with Ayayai Corp. to construct a manufacturing facility. At that time, Blossom estimated that it would take five years to complete the facility at a total cost of $4,523,000. The total contract price for construction of the facility is $6,041,000. During the year, Blossom incurred $1,069,400 in construction costs related to the project. The estimated cost to complete the contract is $4,277,600. Ayayai Corp. was billed and paid 26% of the contract price. The billings are non-refundable.

Prepare schedules to calculate the amount of gross profit to be recognized for the year ended December 31, 2020, and the amount to be shown as contract assets or liabilities at December 31, 2020, under the completed-contract method. (Do not leave any answer field blank. Enter 0 for amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Gross profit to be recognized for the year ended December 31, 2020

Blossom Construction Company Computation of Contract Liability choose the accounting period Year Ended December 31, 2020Quarter Ended December 31, 2020Month Ended December 31, 2020
select an item Partial billings on contractGross profitRevenue recognizedContract liabilityEstimated profitContract priceConstruction costs incurred during the yearPercentage of completionEstimated costs to complete		$enter a dollar amount
select an item Contract priceEstimated profitRevenue recognizedEstimated costs to completeGross profitPartial billings on contractPercentage of completionContract liabilityConstruction costs incurred during the year		enter a dollar amount
select a closing name for this schedule Construction costs incurred during the yearContract liabilityContract priceEstimated costs to completeEstimated profitGross profitPartial billings on contractPercentage of completionRevenue recognized		$enter a total amount

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Prepare schedules to calculate the amount of gross profit to be recognized for the year ended December 31, 2020, and the amount to be shown as contract assets or liabilities at December 31, 2020, under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Blossom Construction Company Computation of Gross Profit and Contract Liability choose the accounting period Month Ended December 31, 2020Quarter Ended December 31, 2020Year Ended December 31, 2020
select an item Percentage of completionRevenue recognizedCosts to dateContract priceGross profitContract liabilityEstimated costs to completePartial billings on contractEstimated profit				$enter a dollar amount
select an item Gross profitContract priceCosts to dateEstimated profitRevenue recognizedPartial billings on contractPercentage of completionContract liabilityEstimated costs to complete		$enter a dollar amount
select an item Estimated costs to completeCosts to dateEstimated profitContract liabilityGross profitPercentage of completionPartial billings on contractContract priceRevenue recognized		enter a dollar amount
				enter a subtotal of the two previous amounts
select a summarizing line for the first part Percentage of completionContract liabilityCosts to dateContract priceGross profitRevenue recognizedEstimated costs to completePartial billings on contractEstimated profit				enter a total amount for the first part
select an item Partial billings on contractGross profitContract priceEstimated profitCosts to datePercentage of completionRevenue recognizedContract liabilityEstimated costs to complete				enter percentages	%
select a closing name for section one Percentage of completionRevenue recognizedEstimated costs to completeContract priceGross profitCosts to dateContract liabilityPartial billings on contractEstimated profit				enter a total amount for section one
select an item Estimated costs to completeContract liabilityPartial billings on contractPercentage of completionEstimated profitRevenue recognizedContract priceGross profitCosts to date				$enter a dollar amount
select an item Revenue recognizedPartial billings on contractEstimated costs to completePercentage of completionGross profitContract priceEstimated profitContract liabilityCosts to date				enter a dollar amount
select a closing name for section two Contract liabilityCosts to dateEstimated costs to completeEstimated profitPercentage of completionContract priceRevenue recognizedPartial billings on contractGross profit				$enter a total amount for section two