Question 1 Business Scenario The Chicken Coop is a business operated by Jenny Jones. It supplies fresh
Question:
Question 1
Business Scenario | |
The Chicken Coop is a business operated by Jenny Jones. It supplies fresh (raw) whole chickens and chicken pieces. The shop also has a rotisserie oven and sells cooked whole chickens and cold drinks. There are 2 employees, Li and Gerald. Business sales include taxable and GST free sales. Purchases also include taxable and GST free amounts. Jenny uses her motor vehicle for business purposes and has kept a logbook which shows 65% business use. Her mobile phone is used 80% for business use. The business premises are owned by Jenny and consist of 2 shops downstairs and a second upstairs floor which is a residential apartment. The Chicken Coop occupies one shop while the second is rented to a bakery. The upstairs apartment is rented out as residential accommodation. |
The Chicken Coop is registered for GST on a cash basis. Manual accounting records are kept and the following:
GST codes are used:
GST No tax (not reportable)
GST Free Input Taxed Supply
Input taxed Exports
Complete the following table to identify the correct code from the list above for each transaction and the amount of GST collected. Refer to the GST Act and relevant public rulings and determinations for guidance.
Your answers:
Received $11.00 sale fresh chicken $8.00 can soft drink $3 | Two codes | |
Received $28.00 sale hot chicken $24 bottled water $4 | Two codes | |
Received $45.00 sale $16 hot chickens, $29 fresh chicken pieces | Two codes |
Question 2
Complete the following table to identify the correct code from the list above for each transaction and the amount of GST input tax credit which can be claimed.
Your answer:
Your answer:
Paid motor vehicle repair costs (including GST) $864.40 | One code | |
Paid mobile phone account (including GST) $69.95 | One code | |
Paid insurance on building $1815.00 (including GST). (Floor area is 1/4 for Chicken Coop, 1/4 for Bakery and for upstairs flat.) | Two codes |
Revised answer:
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding