Use the following information to answer questions 6-10.

Tunnels R Us commenced the construction of a tunnel for the city of Sydney on 1 July 20X5. It was a fixed price contract with revenue of $85 million. The expected completion date is 30 June 20X8. It is expected to cost $74 million to construct. The following information relates to the tunnel construction:

Tunnels R Us uses the percentage of completion method based on cost to account for its construction contracts. Assume all estimates are reliable. Note that all figures are in $000.

What is the appropriate journal entry to record the contract revenue and contract expenses for the year ended 30 June 20X8?

For the year ending 30 June	20X6	20X7	20X8
Costs incurred to date	23680	47500	87000
Estimated cost to complete	50320	28500
Progress billings during the year	20000	50000	15000
Cash collected during the year	15000	52000	18000
Physical completion %	25	59	100