Company XYZ signs a contract on 1 July 2014 to construct a bridge, at a contract price of $9m. It will be completed in 3 years at an expected total cost of $8m. Now assume that XYZ calculates the percentage based on costs to date to total estimated costs. The following information is available:

year end 30 June 2015 30 June 2016 30 June 2017

progress billing 3 million 3 million 3 million

cash collected 2 million 3 million 3 million

cost to date 2 million 7 million 9.4 million

estimated cost to complete 6 million 2.4 million 0

percentage of physical completion 40% 60% 100%

Required:

Provide journal entries to account for all transactions in 2015, 2016 and 2017. Assume all estimates are reliable and XYZ uses costs to calculate the percentage of completion