Question 1

Job Banes Tyres received $550,000 for its tyres and fitting services during the year. Expenses included:

Purchase of tyres $220,000 Rent $66,000 Electricity $22000 Wages $110,000 Accounting fees. $5500 Purchase of Computer equipment $33,000

Job Banes Tyres also had an increasing adjustment of $2,400. a) What are the GST consequences for the receipts and expenses for Job Banes Tyres? (5 marks)

b) What is Job Banes GST payable? (10 marks)