On August X ABC Ltd entered into a long term construction agreement with XYZ Ltd The agreement specifies total consideration for the project of $ Total expected costs for the project are estimated by ABC Ltd at $
At the end of the reporting period, June X ABC Ltd had paid total construction costs of $ in cash. Of these total expenditures, $ is for construction materials not yet used on the project.
On June X XYZ Ltd made a cash payment of $ to ABC Ltd
ABC Ltd calculates the measurement of progress using input methods percentage of completion in accordance with paragraph B of AASB IFRS
Required
Prepare the following journal entries to record the transactions described in the books of ABC Ltd
a Journal entry to record expenditures of $ construction costs
b Journal entry to record recognition of revenue
c Journal entry to record receipt of cash from XYZ Ltd
