Question 17 The board of directors of Splish Construction Company is meeting to choose between the completed-contract method and the percentage of completion method of accounting for long- term contracts in the company's financial statements. You have been engaged to assist Splish's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Splish commenced doing business on January 1, 2021. 2. Construction activities for the year ended December 31, 2021, were as follows: Project Total Contract Billings Through Price 12/31/21 $ 512,000 $ 352,000 732,000 222,000 481,000 487.000 206,000 112,000 462,000 412,000 $2,393,000 $1,585,000 Cash Collections Through 12/31/21 $ 322,000 222,000 402,000 71,000 412,000 $1,429,000 Contract Costs Estimated Incurred Through Additional Costs to 12/31/21 Complete Contracts $ 436,000 $ 113,000 213,000 497,000 362,000 135,000 109,000 332,000 83,000 $1,478,000 $802,000 3. Each contract is with a different customer 4. Any work remaining to be done on the contracts is expected to be completed in 2022. Compute the amount of income (or loss) before selling, general, and administrative expenses for the year ended December 31, 2021, which would be reported under: (1) The completed-contract method. (2) The percentage-of-completion method (based on estimated costs). s Prepare the general journal entry to record revenue and gross profit on project B (second project) for 2021, assuming that the percentage-of-completion method is used. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS Indicate the balances that would appear in the balance sheet at December 31, 2021 for the following accounts for Project D (fourth project), assuming that the percentage-of- completion method is used. Accounts Receivable Billings on Construction in Process Construction in Process SHOW LIST OF ACCOUNTS How would the balances in the accounts discussed in part (c) change (if at all) for Project D (fourth project), if the completed-contract method is used? If the completed-contract method is used the account balances SHOW LIST OF ACCOUNTS