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. 2 Construction activities for the year ended December 31, 2021, were as follows: Total Contract Price Billings Through 12/31/21 Cash Collections Through 12/31/21 Contract Costs Incurred Through 12/31/21 Estimated Additional Costs to Complete Contracts Project A $ 511,000 $ 351,000 $ 321,000 $ 435,000 $ 112,000 B 731,000 221,000 221,000 211,500 493,500 C 480.500 486,000 401,000 361,000 -0- D 205,500 111,000 70,500 134,000 108,000 E 461,000 411,000 411,000 331,000 82,750 $2,389,000 $1.580,000 $1,424,500 $1,472.500 $796,250 3. Each contract is with a different customer. $2,389,000 $1,580,000 $1,424,500 $1,472,500 $796,250 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. X Your answer is incorrect. Compute the amount of income (or loss) before selling, general, and administrative expenses for the year ended December 2021, which would be reported under: (1) 119500 The completed-contract method. ta $ 116260 (2) The percentage-of-completion method (based on estimated costs). - Your answer is partially correct. Your answer is partially correct. 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 O for the amounts.) Account Titles and Explanation Debit Credit Construction in Process 211500 Construction Expenses 7800 Revenue from Long Term Contracts 219300 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 $ * Your answer is incorrect. 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? would increase If the completed-contract method is used the account balances