Cullumber Construction Company began operations on January 1, 2020. During the year, Cullumber entered into a non-cancellable contract with Bramble Corp. to construct a manufacturing facility. At that time, Cullumber estimated that it would take five years to complete the facility at a total cost of $4,490,000. The total contract price for construction of the facility is $6,039,000. During the year, Cullumber incurred $1,122,030 in construction costs related to the project. The estimated cost to complete the contract is $4,220,970. Bramble Corp. was billed and paid 25% 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

Cullumber 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 profitConstruction costs incurred during the yearEstimated costs to completePercentage of completionGross profitContract priceRevenue recognizedContract liabilityPartial billings on contract		$enter a dollar amount
select an item Revenue recognizedPartial billings on contractConstruction costs incurred during the yearPercentage of completionEstimated costs to completeContract liabilityEstimated profitContract priceGross profit		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).)

Cullumber Construction Company Computation of Gross Profit and Contract Liability choose the accounting period Month Ended December 31, 2020Year Ended December 31, 2020Quarter Ended December 31, 2020
select an item Gross profitEstimated costs to completeCosts to datePartial billings on contractRevenue recognizedContract priceContract liabilityPercentage of completionEstimated profit				$enter a dollar amount
select an item Contract priceContract liabilityCosts to dateRevenue recognizedEstimated profitPartial billings on contractEstimated costs to completeGross profitPercentage of completion		$enter a dollar amount
select an item Estimated costs to completeEstimated profitGross profitPartial billings on contractContract pricePercentage of completionRevenue recognizedCosts to dateContract liability		enter a dollar amount
				enter a subtotal of the two previous amounts
select a summarizing line for the first part Gross profitPercentage of completionEstimated profitContract priceCosts to datePartial billings on contractContract liabilityEstimated costs to completeRevenue recognized				enter a total amount for the first part
select an item Costs to dateContract liabilityPartial billings on contractEstimated costs to completeRevenue recognizedGross profitEstimated profitPercentage of completionContract price				enter percentages	%
select a closing name for section one Contract priceCosts to datePercentage of completionPartial billings on contractContract liabilityEstimated profitEstimated costs to completeGross profitRevenue recognized				enter a total amount for section one
select an item Contract priceEstimated profitGross profitRevenue recognizedEstimated costs to completeCosts to dateContract liabilityPartial billings on contractPercentage of completion				$enter a dollar amount
select an item Percentage of completionPartial billings on contractContract liabilityCosts to dateRevenue recognizedEstimated costs to completeEstimated profitContract priceGross profit				enter a dollar amount
select a closing name for section two Contract priceEstimated costs to completeEstimated profitContract liabilityGross profitRevenue recognizedPartial billings on contractCosts to datePercentage of completion