Question 2 DMG Smiles Dental Supplies

The information has been summarised for DMG Smiles Dental Supplies during the September 20X5 quarter in Appendix Case Study - DMG Smiles Dental Supplies.

Financial Information for September 20X5 quarter.

Sales
Total cash sales (Incl GST)	70,000	G8
Other GST-free sales	19,140	G3
Purchases (Incl GST)
Furniture and Fittings (Incl GST)	4,180	G10
Other Capital Purchases (Incl GST)	45,650	G10
Non-Capital Purchases (Incl GST)	5,260	G11
GST-Free Non-Capital	6,534	G11
Cash Payments Book
Wages (net)	22,484
Other Expenses (Incl GST)	880	G11
Stationery and supplies (Incl GST)	2,156	G11
General Journal (Incl GST)
Bad debts	2,090	G18
Other Information:
PAYG withheld from wages	6,900	W2
Commissioner's rate	4.20%

Information for December 20X5 quarter.

DMG Smiles Dental Supplies had a PAYG Instalment amount of $3,477 in the September 20X5 quarter based on sales of $82,776. It is now end of December and the sales for this quarter have been significantly low due to a major change in government legislation in dental supplies industry. DMG Smiles CEO Mr. Dominic Villa predicts that current situation will continue throughout the current year and the company is due to incur the biggest loss in its history. Hence Mr. Dominic has asked to vary the instalment amount to zero for the December 20X5 quarter BAS. Other figures for the quarter have been calculated below.

G1 Total Sales	5,780
G2 Other GST-free sales	1,225
G8 Sales including GST	4,555
G9 GST on Sales (G8 11)	414
G10 Capital purchases	3,305
G11 Non-capital purchases	19,700
G19 Total purchases subject to GST after adjustments	23,005
G20 GST on purchases (G19 11)	2,091
W1 Total salary & wages	14,680
4 PAYG tax withheld	3,760

1. Prepare the GST Calculation Worksheet and all relevant sections of DMG Smiles' September 20X5 BAS showing the final amount refundable to or payable by DMG Smiles.

2. Prepare the GST Calculation Worksheet and all relevant sections of DMG Smiles' December 20X5 BAS showing the final amount refundable to or payable by DMG Smiles.