Presentation & the Percentage-Of-Completion Method

question 98

Essay

Presentation & the percentage-of-completion method
Thuxton Inc. began work on a $ 6,000,000 non-cancellable contract in 2020 to construct a retail building. During 2020, Thuxton incurred costs of $ 1,500,000 and billed its customers for $ 1,400,000 (non-refundable), and collected $ 1,000,000. At December 31, 2020, the estimated future costs to complete the project total $ 2,500,000.
Instructions
Prepare Thuxton's 2020 journal entries using the percentage-of-completion method.

---

Definitions:

Spain

A country in southwestern Europe on the Iberian Peninsula, known for its rich history, cultural diversity, and significant contributions to art, literature, and science.

Headright System

A land grant policy that allocated parcels of land to settlers and investors who financed the passage of indentured servants to the Americas, prevalent in the 17th century.