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Question: MFL Ltd is the industry expert in business operations and North Ltd is struggling in a its business operations. The management of North Ltd decided to hire MFL Ltd to review its business operations and to provide a recommendation within 6 months. The first review report is due in 2 months' time and the final report is due at the end. It was agreed that once the North Ltd receive the final report only they can start implementing the recommendations. MFL Ltd received $80,000 from North Ltd at the commencement as an advance payment on signing the contract and the balance $500,000 at the end of their review.
Required: Prepare the necessary journal entries in the books of MFL Ltd at the commencement on receipt of the advance payment and at end of the review as per AASB 15 "Revenue from Contracts with Customers". (Narrations are not required).
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