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To calculate GST you divide by 11. Business Name: Mr. Ernest Cline Trading As 'Player1 VR Headsets' Ernest began operations on 1 July 2017 under

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To calculate GST you divide by 11.

Business Name: Mr. Ernest Cline Trading As 'Player1 VR Headsets' Ernest began operations on 1 July 2017 under the business name 'Player1 VR Headsets'. The business retails the top of the line Virtual Reality headsets that retails for $550 (including GST) and costs $275 (including GST) to purchase from a supplier 'IOI Supplies Corporation'. Ernest also does installation and maintenance work to which he charges $165 (including GST) per hour for his time. The business is currently operating in Melbourne's South-East next to business is registered for GST which Ernest pays annually University. The Relevant information: 1. Player1 VR Headsets has the following opening balances at the 1 January in the current year: Account name Value as Accounts receivable Invento Accounts Payable - lOl Supplies Office Furniture Accum, Depreciation Office Furniture Office Supplies GST Paid GST Collected Owner's Capital $253,609 $50,722 $21,750 $63,402 $162,480 $32,496 $5,122 $12,577 $36,230 374,132 Corp 2. Transactions for the month of January in the current year (all dollar amounts include GST where applicable) Date Description Business purchased a delivery van for $145200 (including GST) with 20% paid in cash and the remainder financed through a special promotion at ABC bank that charged no interest. The motor vehicle is expected to last 3 years 1/2/18 Business paid $35145 (including GST) for a 3 months lease on the warehouse. 1/5/18Ernest withdrew $215 from the business to pay for a friend's wedding cake. 1/7/18 Business purchased 71 units of inventory on credit from its usual supplier 'IOl Supplies Corporation'. 1/9/18 Business paid $6049 of wages to employees 1/10/18 Online customer paid $3300 (including GST) for VR headsets which she picked up on the same day 1/12/18 Ernest decided to contribute another $28958 into the business 1/13/18 Customer purchased $15950 (including GST) worth of VR headsets and paid the whole amount in cash

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