XY Ltd signed a contract on 1 January 2012, agreeing to build a bridge in 3-years...

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XY Ltd signed a contract on 1 January 2012, agreeing to build a bridge in 3-years for ABC limited at a contract price of $4,000,000. XY Ltd estimated that construction costs would be as follows: Year ended Actual costs incurred Estimated total costs Billings Payment received Year 1 Year 2 Year 3 800,000 1,200,000 1,880,000 3,200,000 3,880,000 3,880,000 920,000 1,200,000 1,880,000 800,000 800,000 2,000,000 Required: Prepare the necessary journal entries to recognise the construction expense' and 'construction revenue' only for the 3 years of the contract for XY Ltd. XY Ltd signed a contract on 1 January 2012, agreeing to build a bridge in 3-years for ABC limited at a contract price of $4,000,000. XY Ltd estimated that construction costs would be as follows: Year ended Actual costs incurred Estimated total costs Billings Payment received Year 1 Year 2 Year 3 800,000 1,200,000 1,880,000 3,200,000 3,880,000 3,880,000 920,000 1,200,000 1,880,000 800,000 800,000 2,000,000 Required: Prepare the necessary journal entries to recognise the construction expense' and 'construction revenue' only for the 3 years of the contract for XY Ltd.

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Here are the journal entries to recognize the construction expense and construction revenue for Year ... View the full answer