During 2x05 the Right Type Group completed the construction of a residential estate of 24 houses. Sales were significantly down on previous developments, primarily as the result of planning permission being granted for a waste management plant adjacent to the estate.

At 31 December 2x05 sales of 12 houses had been completed at a selling prices of $300,000 per house.

Deposits of $20,000 per house had been taken on another four, the sales being dependent on an engineer's report and on the purchaser being able to raise finance. Deposits are refundable if the sales does not proceed.

For the remaining eight, Michael Simpson decided to allow potential purchaser to ocupy them on a three-month lease, each lessee paying $1,000 per month in advance. The eight lease agreements were signed on 1 October 2x05, two of the lessees signed unconditional contract to purchase a house for $300,000 and it was agreed that the December lease installment would be set-off against the purchase price.

Each house had a completed construction cost of $170,000

Question:

1. Please provide accounting entries for transaction above; sales of the houses and the lease-then-sales of the houses