Contract #1482 began on April 1, 2012. As at December 31, 2012, the end of the contractors accounting year, costs incurred were as follows:

$

Materials issued 480,000

Materials on site, December 31, 2012 40,000

Labour 720,000

Plant issued to site April 1, 2012 800,000

Written down value of plant December 31, 2012 560,000

Overheads 120,000

The contract is expected to end in March 2013 and as at December 31, 2012 the cost accountant estimated that the final cost of the contract would be $1,900,000. The full contract price is $1,800,000. Work certified as at December 31, 2012 was valued at $1,400,000. The contractee made progress payments of $1,260,000 up to December 31, 2012.

Required:

1. Prepare the Contract Account. (10 marks)
2. Prepare the contract P&L account
3. Prepare the Contractee Account. (3 marks)
4. Calculate the Balance Sheet value of work-in-progress as at December 31, 2012. (4 marks)
5. List the items that would be included in the contractors Balance Sheet on December 31, 2012. (3 marks)