Johnston Distributing, Inc. files quarterly GST returns. The purchases in which paid the GST and the sales on which it collected the GST for the last four quarters were as follows:

Quarter; Purchases ($); Sales ($)

1; 596,476; 751,841

2: 967,749; 627,374

3: 823,268; 1,231,916

4: 829,804; 994,622

To compute the GST (Goods and Services Tax) returns for **Johnston Distributing, Inc.**, we need to determine the GST amounts for both purchases (GST paid) and sales (GST collected). Assuming a standard GST rate (typically **5%** in many jurisdictions, but please confirm), the following steps outline the process:

### Step 1: Calculate GST Paid on Purchases
For each quarter, the GST paid on purchases is calculated as:
\[
\text{GST Paid} = \text{Purchases} \times \frac{\text{GST Rate}}{100}
\]

### Step 2: Calculate GST Collected on Sales
Similarly, the GST collected on sales is calculated as:
\[
\text{GST Collected} = \text{Sales} \times \frac{\text{GST Rate}}{100}
\]

### Step 3: Net GST Payable or Refundable
For each quarter, the net GST payable (or refundable) is calculated by subtracting the GST paid from the GST collected:
\[
\text{Net GST Payable/Refundable} = \text{GST Collected} - \text{GST Paid}
\]

Let’s break this down for each quarter:

### Quarter 1:
- **Purchases**: \$596,476
- **Sales**: \$751,841
- **GST Paid**: $ 596,476 \times 0.05 = 29,823.80 $
- **GST Collected**: $ 751,841 \times 0.05 = 37,592.05 $
- **Net GST**: $ 37,592.05 - 29,823.80 = 7,768.25 $

### Quarter 2:
- **Purchases**: \$967,749
- **Sales**: \$627,374
- **GST Paid**: $ 967,749 \times 0.05 = 48,387.45 $
- **GST Collected**: $ 627,374 \times 0.05 = 31,368.70 $
- **Net GST**: $ 31,368.70 - 48,387.45 = -17,018.75 $ (Refundable)

### Quarter 3:
- **Purchases**: \$823,268
- **Sales**: \$1,231,916
- **GST Paid**: $ 823,268 \times 0.05 = 41,163.40 $
- **GST Collected**: $ 1,231,916 \times 0.05 = 61,595.80 $
- **Net GST**: $ 61,595.80 - 41,163.40 = 20,432.40 $

### Quarter 4:
- **Purchases**: \$829,804
- **Sales**: \$994,622
- **GST Paid**: $ 829,804 \times 0.05 = 41,490.20 $
- **GST Collected**: $ 994,622 \times 0.05 = 49,731.10 $
- **Net GST**: $ 49,731.10 - 41,490.20 = 8,240.90 $

### Summary of GST Payable/Refundable per Quarter:
1. **Quarter 1**: \$7,768.25 (Payable)
2. **Quarter 2**: -\$17,018.75 (Refundable)
3. **Quarter 3**: \$20,432.40 (Payable)
4. **Quarter 4**: \$8,240.90 (Payable)

### Total GST for the Year:
\[
\text{Total Net GST} = 7,768.25 - 17,018.75 + 20,432.40 + 8,240.90 = 19,422.80 \quad (\text{Payable for the year})
\]

Would you like further details on any specific quarter or calculation? Feel free to ask!

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Here are 5 related questions:
1. How does a GST refund affect cash flow for businesses?
2. What is the typical process for filing quarterly GST returns?
3. What happens if a business consistently has more GST paid than collected?
4. Are there penalties for late GST filings, and how are they calculated?
5. How can businesses reduce their GST liability?

**Tip**: Always maintain detailed records of both purchases and sales invoices, as they are required for accurate GST filing and in case of an audit.

Johnston Distributing, Inc. files quarterly GST returns. The purchases in which paid the GST and the sales on which it collected the GST for the last four quarters were as follows: Quarter; Purchases ($); Sales ($) 1; 596,476; 751,841 2: 967,749; 627,374 3: 823,268; 1,231,916 4: 829,804; 994,622

Learn how to calculate the quarterly GST returns for Johnston Distributing, Inc. using basic arithmetic and percentage formulas. The problem involves determining GST paid on purchases and GST collected on sales over four quarters. Suitable for students in Grades 9-12.

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