Russell Ltd commenced the construction of a bridge on 1July 2013.It has a fixed-price contract for total revenues of $35 million.The expected completion date is 30 June 2016.The expected total cost to Russell Ltd at the beginning of the project is $29 million.The following information relates only to the construction of the bridge:

\begin{array} { | l | r | r | r | } \hline \text { For the year ending } 30 \text { June } & \begin{array} { r } 2014 \\( \$ 000 )\end{array} & \begin{array} { r } 2015 \\( \$ 000 )\end{array} & \begin{array} { r } 2016 \\( \$ 000 )\end{array} \\\hline \text { Costs for the year } & 12000 & 18000 & 7000 \\\hline \text { Costs incurred to date } & 12000 & 30000 & 37000 \\\hline \text { Estimated costs to complete } & 19500 & 6300 & - \\\hline \text { Progress billings during the year } & 10000 & 12000 & 13000 \\\hline \text { Cash collected during the year } & 7000 & 10000 & 18000 \\\hline\end{array}

Russell Ltd uses the percentage-of-completion method based on cost to account for its construction contracts.Assuming that the entries for 2014 have been made,what are the journal entries for the year ended 30 June 2015 (rounded to the nearest $000)?
A)

\begin{array} { | r | l | r | r | } \hline & & \$ ( 000 ) & \$ ( 000 ) \\\hline \mathrm { Dr } & \text { Construction in progress } & 18000 & \\\hline \mathrm { Cr } & \text { Materials, cash, etc. } & & 18000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Accounts receivable } & 12000 & \\\hline \mathrm { Cr } & \text { Billings on construction in progress } & & 12000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Cash } & 10000 & \\\hline \mathrm { Cr } & \text { Accounts receivable } & & 10000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Construction expenses } & 18000 & \\\hline \mathrm { Cr } & \text { Revenue from long-term contract } & & 15992 \\\hline \mathrm { Cr } & \text { Construction in progress } & & 2408 \\\hline\end{array}

\begin{array} { | r | l | r | r | } \hline & & \$ ( 000 ) & \$ ( 000 ) \\\hline \mathrm { Dr } & \text { Construction in progress } & 30000 & \\\hline \mathrm { Cr } & \text { Materials, cash, etc. } & & 30000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Accounts receivable } & 12000 & \\\hline \mathrm { Cr } & \text { Billings on construction in progress } & & 12000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Cash } & 10000 & \\\hline \mathrm { Cr } & \text { Accounts receivable } & & 10000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Unearned revenue } & 18000 & \\\hline \mathrm { Cr } & \text { Revenue from long-term contract } & & 15686 \\\hline \mathrm { Cr } & \text { Construction in progress } & & 2314 \\\hline\end{array}

\begin{array} { | l | l | r | r | } \hline & & \$ ( 000 ) & \$ ( 000 ) \\\hline \mathrm { Dr } & \text { Construction in progress } & 12000 & \\\hline \mathrm { Cr } & \text { Materials, cash, etc. } & & 12000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Accounts receivable } & 12000 & \\\hline \mathrm { Cr } & \text { Billings on construction in progress } & & 12000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Cash } & 10000 & \\\hline \mathrm { Cr } & \text { Accounts receivable } & & 10000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Construction in progress } & 18000 & \\\hline \mathrm { Dr } & \text { Construction expenses } & 12000 & \\\hline \mathrm { Cr } & \text { Revenue from long-term contract } & & 30000 \\\hline\end{array}

\begin{array} { | r | l | r | r | } \hline & & \$( 000 ) & \$ ( 000 ) \\\hline \mathrm { Dr } & \text { Construction in progress } & 18000 & \\\hline \mathrm { Cr } & \text { Materials, cash, etc. } & & 18000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Accounts receivable } & 12000 & \\\hline \mathrm { Cr } & \text { Billings on construction in progress } & & 12000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Cash } & 10000 & \\\hline \mathrm { Cr } & \text { Accounts receivable } & & 10000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Construction in progress } & 1477 & \\\hline \mathrm { Dr } & \text { Construction expenses } & 18000 & \\\hline \mathrm { Cr } & \text { Revenue from long-term contract } & & 19477 \\\hline\end{array}

The General Rule Under Modified Historical-Cost Accounting Is That Holding

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