The board of directors of Marigold 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 Marigold's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information:

1. Marigold commenced doing business on January 1, 2021.

2. Construction activities for the year ended December 31, 2021, were as follows:

Project 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

A $492,000 $332,000 $302,000 $416,000 $93,000

B 712,000 202,000 202,000 183,000 427,000

C 471,000 467,000 382,000 342,000 -0-

D 196,000 92,000 61,000 115,000 89,000

E 442,000 392,000 392,000 312,000 78,000

$2,313,000 $1,485,000 $1,339,000 $1,368,000 $687,000

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). $

SHOW LIST OF ACCOUNTS

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

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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

.