Newing plc (Newing) is a construction company constructing homes and apartments. In its financial statements for the fiscal year ended on 31 December 2021, Newing recognised revenue for the following construction contract: At the beginning of 2021, Newing entered into a contract with a local government authority. The contract specified that Newing would construct an apartment building for people with disabilities on land owned by the government authority. To accommodate the preferences of the government authority, Newing arranged several meetings before the contract was signed. At these meetings, the parties discussed, for example, size of the apartments and rooms, the possibility of creating communal areas and the installation of exclusively designed equipment that some of the future tenants require. The government authority agreed to a price of 1,850,000 and will pay the entire amount upon completion. At the end of 2021, Newing has incurred costs in relation to the contract of 978,000 of which 718,000 relate to work performed in fiscal year 2021. Newing expects total costs to amount to 1,350,000 and will complete the construction of the apartment building by the end of fiscal year 2022.

Calculate the amount of revenue, using costs incurred for work performed to date relative to total expected costs as measure of progress, and prepare the corresponding journal entries in Newings financial statements for fiscal years 2021 and 2022.