Boldwin Construction has entered into a contract with Spears Retailers to construct a new department store on Spears land. The contract sum is £45 million. At 30 June 20X1 the situation is as follows:

(a) The contract is 30% complete;

(b) Expenses to date on the contract are £15 million;

(c) Additional expenses to complete the contract are estimated at £25 million;

(d) Billings during the year £5 million;

(e) Payments received from Spears Retailers £4 million.

Required:

(a) Show the profit entries and the resulting assets in the statement of financial position.

(b) Repeat the work in (a) assuming the cost to complete is estimated at £32 million.

(c) If the project is finished by June 20X2 and the additional cost to complete was £23 million, billings for the year £26 million, and cash received £25 million, show the relevant entries in the comprehensive income statement and financial position statement, assuming first scenario (a) occurred, and then repeat the exercise under scenario (b).