Novak Construction Company began operations on January 1, 2020. During the year, Novak Construction entered into...

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Novak Construction Company began operations on January 1, 2020. During the year, Novak Construction entered into a contract with Lundquist Corp. to construct a manufacturing facility. At that time, Novak estimated that it would take 5 years to complete the facility at a total cost of $4,477,000. The total contract price for construction of the facility is $6,007,000. During the year, Novak incurred $1,242,920 in construction costs related to the construction project. The estimated cost to complete the contract is $4,161,080. Lundquist Corp. was billed and paid 26% of the contract price. Prepare schedules to compute the amount of gross profit to be recognized for the year ended December 31, 2020, and the amount to be shown as "costs and recognized profit in excess of billings" or "billings in excess of costs and recognized profit" at December 31, 2020, under each of the following methods. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). If answer is 0, please enter O. Do not leave any fields blank.) (a) Completed-contract method. Gross Profit to be recognized $ Computation of Billings on Uncompleted Contract in Excess of Related Costs under Completed-Contract Method $ Construction Costs Incurred During the Year $ Estimated Total Gross Profit from Contract Partial Billings on Contract Total Charged to Construction-in-Process Total Contract Price (b Total Estimated Cost Novak Construction Company began operations on January 1, 2020. During the year, Novak Construction entered into a contract with Lundquist Corp. to construct a manufacturing facility. At that time, Novak estimated that it would take 5 years to complete the facility at a total cost of $4,477,000. The total contract price for construction of the facility is $6,007,000. During the year, Novak incurred $1,242,920 in construction costs related to the construction project. The estimated cost to complete the contract is $4,161,080. Lundquist Corp. was billed and paid 26% of the contract price. Prepare schedules to compute the amount of gross profit to be recognized for the year ended December 31, 2020, and the amount to be shown as "costs and recognized profit in excess of billings" or "billings in excess of costs and recognized profit" at December 31, 2020, under each of the following methods. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). If answer is 0, please enter O. Do not leave any fields blank.) (a) Completed-contract method. Gross Profit to be recognized $ Computation of Billings on Uncompleted Contract in Excess of Related Costs under Completed-Contract Method $ Construction Costs Incurred During the Year $ Estimated Total Gross Profit from Contract Partial Billings on Contract Total Charged to Construction-in-Process Total Contract Price (b Total Estimated Cost