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Question 8 Queens Construction Company commences construction of a harbour on 1 July 2020. It signs...

Question 8

Queens Construction Company commences construction of a harbour on 1 July 2020. It signs a fixed-price contract for total revenue of $400 million. The project is expected to be completed by the end of June 2023. The expected cost at the commencement of construction was $300 million. The expected costs to complete a construction project can change throughout the project. The following data relates to the project:

2021

2022

2023

($ M)

($ M)

($ M)

Costs for the year

90

110

120

Costs incurred to date

90

200

320

Estimated costs to complete

210

120

-

Progress billings during the year

100

120

180

Cash collected during the year

90

130

180

The contract is completed as expected on 30 June 2023. Queens Construction Company uses the percentage-of-completion method to account for its construction contract.

REQUIRED

Provide the numbers for the journal entries below. Assume the stage of completion can be reliably determined. Round the percentage complete (%) to one decimal place (i.e, 0.0%) if necessary.  Complete the six blanks below. (You don't need to provide the numbers for "?")

-------------------------------------

Journal entry to record periodic income recognised for 2021, 2022, 2022

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