Please helpespecially how to recongniz construction contract

The following trial balance relates to Kedison plc at 30th August 2019. '000 '000 324,000 16,850 112,430 15,420 20,870 42,690 1,300 5,000 135,860 9,400 Sales Inventory at 1st September 2018 Purchases Distribution expenses Administration expenses Factory wages Interest paid Interim dividend paid Land and buildings at cost at 1st September 2018 (note iii) Buildings accumulated depreciation at 1st September 2018 Plant and machinery at cost Plant accumulated depreciation at 1st September 2018 Construction contract (note ii) Trade receivables Bank Trade payables Ordinary shares of 50p each Share premium Retained earnings 46,800 8,020 1,480 20,080 11,450 15,920 50,000 7,300 15,590 430.230 430,230 The following additional information is relevant: i. Inventory was counted on 30th August 2019 and valued at 22,500,000 ii. Kedison commenced work on a construction contract on 14 October 2018. The amount in the trial balance represents costs incurred to date. No payments on account have been invoiced or received. The contract price is 4,700,000 and a total profit of 1,500,000 is expected. The contract is currently 30% complete. iii. The directors decided to revalue land and buildings as at 15 September 2018. A Chartered Surveyor provided the following valuations: Land 120,000,000 Buildings 80,000,000 200.000.000 As at 1st September 2018 the building had a remaining life of 40 years with a nil residual value. Depreciation on the building is to be charged to administrative expenses. Ignore any transfers from the revaluation reserve to realised profits. iv. Depreciation on plant and machinery is to be charged at 15% using the reducing balance method. It should be charged two thirds to cost of sales and one third to distribution expenses. V. Corporation tax for the year ended 30th August 2019 is estimated to be 38,870,000. vi. The directors wish to propose a final dividend of 7p per share. Required Prepare the income statement for the year ended 30th August 2019 and a statement of financial position as at that date for Kedison plc. The financial statements should comply as far as possible with the Companies Act and International Accounting Standards. Formal notes to the accounts are not required, but you should show your workings clearly. 1100 marks]