Sandstone Construction Company commences construction of new university campus on 1 July 2019. It signs a fixed-price contract for total revenue of $220 million. The project is expected to be completed by the end of June 2021. The expected cost at the commencement of construction was $200 million. The expected costs to complete a construction project can change throughout the project. The following data relates to the project:

	2019	2020	2021
	($ M)	($ M)	($ M)
Costs for the year	50	75	65
Costs incurred to date	50	125	190
Estimated costs to complete	150	75	-
Progress billings during the year	60	80	80
Cash collected during the year	40	80	100

The contract is completed as expected on 30 June 2021. Sandstone Construction Company uses the percentage-of-completion method to account for its construction contract. Assume that companys financial year end 30 June. REQUIRED (a) Compute the gross profit to be recognised for each of the three years. (b) Provide the journal entries for year end 2019. Assume the stage of completion can be reliably determined. Exclude journal narrations.