Carla Vista Construction Company began operations on January 1, 2020. During the year, Carla Vista entered into a non-cancellable contract with Martinez Corp. to construct a manufacturing facility. At that time, Carla Vista estimated that it would take five years to complete the facility at a total cost of $4,505,000. The total contract price for construction of the facility is $6,003,000. During the year, Carla Vista incurred $1,075,000 in construction costs related to the project. The estimated cost to complete the contract is $4,300,000. Martinez Corp. was billed and paid 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 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

Carla Vista Construction Company Computation of Contract Liability choose the accounting period Year Ended December 31, 2020Month Ended December 31, 2020Quarter Ended December 31, 2020
select an item Estimated costs to completePercentage of completionGross profitPartial billings on contract Construction costs incurred during the yearEstimated profit Revenue recognized Contract liability Contract price		$enter a dollar amount
select an item Contract liability Contract pricePercentage of completionEstimated costs to completeEstimated profit Construction costs incurred during the yearPartial billings on contract Gross profitRevenue recognized		enter a dollar amount
select a closing name for this schedule Construction costs incurred during the yearContract liability Contract priceEstimated costs to completeEstimated profit Gross profitPartial billings on contract Percentage 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).)

Carla Vista Construction Company Computation of Gross Profit and Contract Liability choose the accounting period Year Ended December 31, 2020Month Ended December 31, 2020Quarter Ended December 31, 2020
select an item Costs to dateEstimated costs to completeContract liability Estimated profit Contract pricePercentage of completionGross profitPartial billings on contract Revenue recognized				$enter a dollar amount
select an item Revenue recognized Contract liability Costs to date Contract price Estimated costs to complete Partial billings on contract Estimated profit Percentage of completion Gross profit		$enter a dollar amount
select an item Estimated profit Revenue recognized Gross profit Percentage of completion Contract liability Contract price Partial billings on contract Estimated costs to complete Costs to date		enter a dollar amount
				enter a subtotal of the two previous amounts
select a summarizing line for the first part Revenue recognized Contract liability Contract priceCosts to dateGross profitPartial billings on contract Estimated costs to completeEstimated profit Percentage of completion				enter a total amount for the first part
select an item Estimated profit Contract liability Percentage of completionRevenue recognized Costs to dateContract priceEstimated costs to completeGross profitPartial billings on contract				enter percentages	%
select a closing name for section one Revenue recognized Partial billings on contract Percentage of completionContract liability Contract priceCosts to dateEstimated costs to completeEstimated profit Gross profit				enter a total amount for section one
select an item Estimated costs to completeRevenue recognized Partial billings on contract Percentage of completionEstimated profit Contract liability Contract priceCosts to dateGross profit				$enter a dollar amount
select an item Revenue recognized Gross profitEstimated costs to completeEstimated profit Partial billings on contract Percentage of completionContract liability Contract priceCosts to date				enter a dollar amount
select a closing name for section two Revenue recognized Contract liability Percentage of completionEstimated costs to completeGross profitPartial billings on contract Contract priceEstimated profit Costs to date				$enter a total amount for section two