Bridge Builders Ltd undertook a contract to build a pedestrian footbridge for a fixed price of

£400,000 during the period from May Year 1 to July Year 2. This table sets out transactions up to the company’s year end in December, Year 1.

Required:

(a) Prepare relevant ledger account records.

(b) Prepare a statement of contract profit for Year 1.

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Transactions May May July June-Dec May-Dec Sept May-Dec Dec during Year 1: Materials purchased and delivered to site Equipment delivered to site Architect's fee Dec Dec Dec Dec Dec Materials issued from store Wages paid on site Payment to subcontractors Direct costs Head office charges At the end of Year 1 Value of equipment remaining on site Value of material remaining on site Sales value of work certified Amount due to subcontractors Direct costs incurred but not yet paid 000s 91 14 7 76 71 10 22 6 9 15 280 3 3