11..Quickbuild Ltd entered into a two-year contract on 1 Januar y 20X7 at a contract price of 250,000.

The estimated cost of the contract was 150,000. At the end of the first year the following information was available:

● contract costs incurred totalled 70,000

● inventories still unused at the contract site totalled 10,000

● progress payments received totalled 60,000

● other non-contract inventories totalled 185,000.

Required:

(a) Calculate the Income Statement entries for the contract revenue and the contract costs.

(b) Calculate the Balance Sheet entries for the amounts due from construction contracts and inventories.