The board of directors of Blossom 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 Blossom's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Blossom commenced doing business on January 1, 2021. Construction activities for the year ended December 31, 2021, were as follows: 2. Project Estimated Additional Costs to Complete Contracts $ 112,000 493,500 A B Total Contract Price $ 511,000 731,000 480,500 205,500 461,000 $2,389,000 Billings Through 12/31/21 $ 351,000 221,000 486,000 111,000 411,000 $1,580,000 Contract Costs Incurred Through 12/31/21 $ 435,000 211,500 361,000 134,000 331,000 $1,472,500 Cash Collections Through 12/31/21 $ 321,000 221,000 401,000 70,500 411,000 $1,424,500 -0 D E 108,000 82,750 $796,250 3. Each contract is with a different customer. Any work remaining to be done on the contracts is expected to be completed in 2022. 4. 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). $ 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 for the amounts.) Account Titles and Explanation Debit Credit