Bessrawl & Harrington Company, based in the US, prepares US GAAP consolidated financial statements. The company has asked you to determine the adjustments needed to convert the 2015 US GAAP financial statements to a set of IFRS financial statements. For each item below indicate the adjusting entry needed; if no entry is needed enter "none as your answer.

A) Bessrawl & Harrington Company entered into a contract on October 1, 2015 to provide engineering services to a long-term customer over a 12-month period. The fixed price is $250,000. The $250,000 will be paid to Bessrawl & Harringtonon September 30, 2016. The company estimates with a high degree of reliability that the project is 30 percent complete at the end of 2015. Bessrawl & Harrington uses the straight-line method of recognizing service revenue where allowable.

B) On January 1, 2014 the company issued $10,000,000 of 5 percent bonds at par value that mature in five years on December 31, 2018. Cost incurred in issuing the bonds were $500,000. Interest is paid on the bonds annually. The effective interest rate on the bonds 5% excluding bond issuance cost and 6.192% including bond issuance cost.