A resident company with a 30 company tax rate is owned by one resident individual The company has an opening credit balance of $12,000 in its franking account as at 1 st of July 2020 Following are the transactions for the year On 12 July 2020 a fully franked final dividend of $14,000 was paid to the shareholder On 23 August 2020 the PAYG Instalment for June 2020 quarter of $22,000 was paid to the ATO On 31 August 2020 a $42,000 cash dividend franked to 50 was paid to the shareholder On 18 November 2020 the PAYG Instalment for September 2020 quarter of $22,000 was paid to the ATO On 12 December 2020 the company received an income tax refund of $28,000 from the ATO for the 2020 tax return On 21 February 2021 the PAYG Instalment for December 2020 quarter of $12000 was paid to the ATO On 12 May 2021 the PAYG Instalment for March 2021 quarter of $12,000 was paid to the ATO On 21 May 2021 the PAYG Withholding for the month of April 2021 of $42,000 for employee wages was paid to the ATO On 15 June 2021 a fully franked interim dividend of $84,000 was proposed by the board to be paid to the shareholder Required You are required to prepare the companys franking account for this income year and advise of any discrepancies you discover

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Posted on Jul 10, 2024

A resident company with a 30% company tax rate is owned by one resident individual. The company has an opening credit balance of $12,000 in

A resident company with a 30% company tax rate is owned by one resident individual. The company has an opening credit balance of $12,000 in its franking account as at 1^st of July 2020. Following are the transactions for the year:

On 12 July 2020 a fully franked final dividend of $14,000 was paid to the shareholder;
On 23 August 2020 the PAYG Instalment for June 2020 quarter of $22,000 was paid to the ATO;
On 31 August 2020 a $42,000 cash dividend franked to 50% was paid to the shareholder;
On 18 November 2020 the PAYG Instalment for September 2020 quarter of $22,000 was paid to the ATO;
On 12 December 2020 the company received an income tax refund of $28,000 from the ATO for the 2020 tax return;
On 21 February 2021 the PAYG Instalment for December 2020 quarter of $12000 was paid to the ATO;
On 12 May 2021 the PAYG Instalment for March 2021 quarter of $12,000 was paid to the ATO;
On 21 May 2021 the PAYG Withholding for the month of April 2021 of $42,000 for employee wages was paid to the ATO.
On 15 June 2021 a fully franked interim dividend of $84,000 was proposed by the board to be paid to the shareholder.

Required:

You are required to prepare the companys franking account for this income year and advise of any discrepancies you discover.