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 $4,532,000. The total contract price for construction of the facility is $6,033,000. During the year, Blossom incurred $1.294,800 in construction costs related to the project. The estimated cost to complete the contract is $4,100,200. Ayayal Corp. was billed and ppid 27% 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 o for amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) -334110 Gross profit to be recognized for the year ended December 31, 2020 Blossom Construction Company Computation of Contract Liability Year Ended December 31, 2020 Gross profit to be recognized for the year ended December 31, 2020 -334110 Blossom Construction Company Computation of Contract Liability Year Ended December 31, 2020 $ $ 1294800 Construction costs incurred during the year : Partial billings on contract 1628910 Estimated costs to complete 334110 e Textbook and Media 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- 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 Year Ended December 31, 2020 $ Contract price 6033000 Estimated costs to complete Estimated profit Costs to date 27 % Percentage of completion Gross profit $ parentheses e.g. (45).) Blossom Construction Company Computation of Gross Profit and Contract Liability Year Ended December 31, 2020 Contract price $ 6033000 Estimated costs to complete : Estimated profit Costs to date Percentage of completion 27 %6 Gross profit
