Problem:
Required:
(a) Prepare the journal entries in relation to recognising the revenue for the Kura contract for the year ended 30 June 2024 for Architex Limited. Show your workings. Ignore the impact of tax.
(b) Assume that at 30 June 2024, Architex has a contract liability of $1 million on its statement of financial position in relation to several ongoing construction jobs, including its contract with Kura. For tax purposes, Architex''s revenue is assessable when received in cash. Calculate and identify the temporary difference in relation to the contract liability as at 30 June 2024.