During its financial year ended 30 June 20X7 Beavers, an engineering company, has worked on several contracts. Information relating to one of them is given below:
Contract X201
Date commenced ............. 1 July 20X6
Original estimate of completion date 30 September .. 20X7
Contract price ................ £240,000
Proportion of work certified as satisfactorily
completed (and invoiced) up to 30 June 20X7 .. £180,000
Progress payments from Dam Ltd ......... £150,000

Costs up to 30 June 20X7
Wages .................. £91,000
Materials sent to site .............. £36,000
Other contract costs ............. £18,000
Proportion of Head Office costs ......... £6,000
Plant and equipment transferred to the site
(at book value on 1 July 20X6) .......... £9,000

The plant and equipment is expected to have a book value of about £1,000 when the contract is completed.
Inventor y of materials at site 30 June 20X7 ..... £3,000
Expected additional costs to complete the contract:
Wages ................... £10,000
Materials (including stock at 30 June 20X7) ... £12,000
Other (including Head Office costs) ........ £8,000

At 30 June 20X7 it is estimated that work to a cost value of £19,000 has been completed, but not included in the certifications.
If the contract is completed one month earlier than originally scheduled, an extra £10,000 will be paid to the contractors. At the end of June 20X7 there seemed to be a ‘good chance’ that this would happen.
Required:
(a) Show the account for the contract in the books of Beavers up to 30 June 20X7 (including any transfer to the statement of comprehensive income which you think is appropriate).
(b) Show the statement of financial position entries.
(c) Calculate the profit (or loss) to be recognized in the 20X6–X7 accounts.