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The board of directors of Whispering 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 Whispering's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. Whispering commenced doing business on January 1, 2021. 2. Construction activities for the year ended December 31, 2021, were as follows: Project A B Contract Costs Estimated Total Contract Billings Through Cash Collections Incurred Through Additional Costs to Price 12/31/21 Through 12/31/21 12/31/21 Complete Contracts $ 499,000 $ 339,000 $ 309,000 $ 423,000 $ 100,000 719,000 209,000 209,000 193,500 451,500 474,500 474,000 389,000 349,000 -0- 199,500 99,000 64,500 122,000 96,000 449,000 399,000 399,000 319,000 79,750 $2,341,000 $1,520,000 $1,370,500 $1,406,500 $727,250 D E 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). $ 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 $ 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

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