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A resident company, owned by two resident individuals, has an opening credit balance of $7,000 in its franking account in this income year. It has
A resident company, owned by two resident individuals, has an opening credit balance of $7,000 in its franking account in this income year. It has the following transactions in the year:
- on 18 July, it paid a PAYG instalment of $30,000;
- on 29 August, it paid a $35,000 cash dividend franked to 80%;
- on 3 September, it received a $28,000 cash dividend franked to 90%;
- on 21 September, it paid a $7,000 cash dividend with franking credits of $1,800 attached;
- on 5 October, salaries paid to one of its shareholders were deemed to be dividends under Div 7A of the ITAA 1936. The amount of deemed dividend was $21,000;
- on 2 February, it received an income tax refund of $18,000 from the ATO;
- on 10 March, it paid a $20,000 cash dividend franked to 95%;
- it had a $90,000 PAYG instalment due on 21 April but did not pay it until 3 July in the following income year.
REQUIRED
Prepare the companys franking account for this income year.
Can someone please help me with the franking account transactions ASAP please?
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