Woking Ltd is a landscaping company operating in Quebec For
Woking Ltd. is a landscaping company operating in Quebec. For each of the following, explain how much revenue or expense should be reported on the income statement for the month of July. Also explain the impact on the balance sheet at the end of July:
a. At the beginning of July, Woking had $2,000 of supplies on hand and at the end there was $900. During the month, Woking purchased an additional $3,900 of supplies.
b. On July 15, a customer paid a $2,000 deposit for landscaping in his backyard. The total cost of the work will be $15,000. Woking will begin work on the project in August. The next payment on the project will be made when work begins.
c. On April 1, Woking paid $14,000 to rent specialized equipment for seven months, through October.
d. During the month, Woking paid $2,500 in cash to cover various expenses. $500 of the amount was for services used in June.
e. In June, a customer paid $5,000 for some design work. Woking began work on the project in early July and by the end of the month the job was 60 percent completed.
f. During July, Woking's employees earned $3,000. At the end of July, Woking owed the employees $600. During July, the employees received $3,500 in payments for wages.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help