The board of directors of Cheyenne 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 Cheyenne's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Cheyenne commenced doing business on January 1, 2021. 2. Construction activities for the year ended December 31, 2021, were as follows: Total Contract Billings Through $ 307,000 207,000 Contract Costs Incurred Through 12/31/21 $ 421,000 190,500 Estimated Additional Costs to Complete Contracts $ 98,000 444,500 Project Price 12/31/21 Cash Collections Through 12/31/21 A $ 497,000 B 717,000 C 473,500 D 198,500 E 447,000 $ 337,000 207,000 472,000 97,000 397,000 387,000 347,000 -0- 63,500 397,000 120,000 94,000 317,000 $2,333,000 $1,510,000 $1,361,500 $1,395,500 79,250 $715,750 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). SHOW LIST OF ACCOUNTS 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