The board of directors of Vaughn 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 Vaughn'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 Vaughn commenced doing business on January 1, 2021. Construction activities for the year ended December 31, 2021, were as follows: Contract Costs Total Contract Billings Through Cash Collections Incurred Through Project Price 12/31/21 Through 12/31/21 12/31/21 $ 503,000 $ 343.000 $313.000 $ 427.000 B 723.000 213.000 213,000 199.500 476,500 478,000 393,000 D 201.500 103,000 66,500 126,000 E 453.000 403,000 403.000 323.000 $2,357,000 $1.540,000 $1.388,500 $1.428.500 Estimated Additional Costs to Complete Contracts $ 104,000 465.500 -0- 100.000 80.750 $750.250 352.000 3. 4. Each contract is with a different customer Any work remaining to be done on the contracts is expected to be completed in 2022. Compute the amount of income for loss) before selling general and administrative expenses for the year ended December 31, 2021, which would be reported under The completed-contract method. Compute the amount of income for loss) before selline, general, and administrative expenses for the year ended December 31, 2021, which would be reported under: (1) The completed contract method. $ 12 The percentage of completion method based on estimated costs). $ 1 Prepare the general journal entry to record revenue and gross proht on project 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 Indicate the balances that would appear in the balance sheet at December 31, 2021 for the following accounts for Project fourth project, assuming that the percentage-of-completion method is used ndicate the balances that would appear in the balance sheet at December 31, 2021 for the followig 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 $ How would the balances in the accounts discussed in part (c) change lif at all) for Project D (fourth project). if the completed contract method is used? If the completed contract method is used the account balances