The Board of Directors of Ogle Construction Company Is Meeting

The board of directors of Ogle 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 Ogle's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information:1. Ogle commenced doing business on January 1, 2015.2. Construction activities for the year ended December 31, 2015, were as follows: 3. Each contract is with a different customer."4. Any work remaining to be done on the contracts is expected to be completed in 2016.
Instructions
(a) Prepare a schedule by project, computing the amount of income (or loss) before selling, general, and administrative expenses for the year ended December 31, 2015, which would be reported under:(1) The completed-contract method.(2) The percentage-of-completion method (based on estimated costs).
(b) Prepare the general journal entry(ies) to record revenue and gross profit on project B (second project) for 2015, assuming that the percentage-of-completion method is used.
(c) Indicate the balances that would appear in the balance sheet at December 31, 2015 for the following accounts for Project D (fourth project), assuming that the percentage-of-completion method is used.Accounts ReceivableBillings on Construction in ProcessConstruction in Process(d) 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?"