The board of directors of Sheffield 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 Sheffield's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. 2. Sheffield commenced doing business on January 1, 2021. 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 Estimated 12/31/21 Additional Costs to Complete Contracts A $ 505,000 $ 345,000 $ 315,000 $ 429,000 B 725,000 215,000 215,000 202,500 $ 106,000 472,500 C 477,500 480,000 395,000 355,000 -0- D 202,500 105,000 67,500 128,000 102,000 E 455,000 405,000 405,000 325,000 81,250 $2,365,000 $1,550,000 $1,397,500 $1,439,500 $761,750 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). $ List of Accounts Save for Later Part 2 Attempts: 0 of 1 used Submit Answer 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 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 List of Accounts Save for Later Part 4 $ Attempts: 0 of 1 used Submit Answer 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 List of Accounts Save for Later Attempts: 0 of 1 used Submit