Sunland Construction Company began operations on January 1, 2020. During the year, Sunland entered into a non-cancellable contract with Marigold Corp. to construct a manufacturing facility. At that time, Sunland estimated that it would take five years to complete the facility at a total cost of $4,495,000. The total contract price for construction of the facility is $6,038,000. During the year, Sunland incurred $1,190,640 in construction costs related to the project. The estimated cost to complete the contract is $4,221,360. Marigold 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

Sunland 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 completeGross profitConstruction costs incurred during the yearRevenue recognizedContract liabilityPercentage of completionEstimated profitPartial billings on contractContract price		$enter a dollar amount
select an item Estimated costs to completeContract priceGross profitConstruction costs incurred during the yearRevenue recognizedContract liabilityPartial billings on contractEstimated profitPercentage of completion		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).)

Sunland Construction Company Computation of Gross Profit and Contract Liability choose the accounting period Year Ended December 31, 2020Quarter Ended December 31, 2020Month Ended December 31, 2020
select an item Percentage of completionGross profitContract priceContract liabilityEstimated costs to completeCosts to datePartial billings on contractRevenue recognizedEstimated profit				$enter a dollar amount
select an item Contract liabilityGross profitPartial billings on contractRevenue recognizedCosts to dateEstimated costs to completeContract pricePercentage of completionEstimated profit		$enter a dollar amount
select an item Costs to datePartial billings on contractContract priceGross profitEstimated costs to completeContract liabilityEstimated profitPercentage of completionRevenue recognized		enter a dollar amount
				enter a subtotal of the two previous amounts
select a summarizing line for the first part Estimated costs to completeContract priceEstimated profitCosts to datePartial billings on contractGross profitContract liabilityPercentage of completionRevenue recognized				enter a total amount for the first part
select an item Percentage of completionCosts to dateEstimated costs to completeGross profitContract pricePartial billings on contractEstimated profitRevenue recognizedContract liability				enter percentages	%
select a closing name for section one Percentage of completionEstimated costs to completeCosts to dateContract pricePartial billings on contractContract liabilityRevenue recognizedEstimated profitGross profit				enter a total amount for section one
select an item Costs to dateContract priceEstimated profitGross profitPercentage of completionRevenue recognizedEstimated costs to completeContract liabilityPartial billings on contract				$enter a dollar amount
select an item Estimated profitGross profitContract liabilityPartial billings on contractEstimated costs to completePercentage of completionRevenue recognizedCosts to dateContract price				enter a dollar amount
select a closing name for section two Percentage of completionRevenue recognizedContract liabilityPartial billings on contractEstimated profitContract priceCosts to dateGross profitEstimated costs to complete				$enter a total amount for section two