ABC Limited ("ABC"), a construction company based in Singapore that adopts the Singapore Financial Reporting Standards ("FRSs"), enters into a contract to build a shopping mall for its client on the client-owned land for a contract price of $40 million. The construction is expected to take place over three years from January 20x1 to December 20x3. Progress billings of $20 million are to be made in the first year, $15 million in the second year and the final $5 million on completion in the third year. The progress billings are to be made near to the end of each year and the cash are collected by the end of the same year. At the start of the contract, the total expected costs to ABC is estimated to be $36 million.

In 20x1, the actual costs incurred during the year amounted to $15,960,000. Due to changes in legislation, additional costs are expected to be incurred. Hence, $14,040,000 are expected to be incurred in 20x2 and $12,000,000 in 20x3 to complete the project. Progress billing and cash collection take place as expected.

In 20x2, actual costs incurred during the year amounted to $14,840,000. $13,200,000 is now expected in 20x3 to complete the project. Progress billing and cash collection take place as expected.

In view of the changes in legislative requirements resulting in higher contract costs incurred, ABC engaged in negotiations with its client and in 20x3, the contract price was then revised to $60,000,000. All outstanding billings were to be made in 20x3 and cash collected by the end of the contract. In 20x3, the actual costs incurred during the year was $19,200,000. The project was completed as planned, i.e. by the end of the third year.

ABC has a 31 December financial year end. It adopts the input cost method as a measure of progress for revenue recognition under FRS 115 Revenue from Contract with Customers. In presenting your answers, where percentages are used, round your answers to the nearest one decimal place and for others, round your answers to the nearest dollar.

Required:

Apply FRS 115 Revenue from Contract with Customers and prepare all the necessary journal entries (journal narrative not required) to record the transactions for 20x1, 20x2 and 20x3 respectively. Show all workings.