During the year ending 30, 06, 2020, Vintage Ltd, a resident Australian public company, provided you with the following information: 

• The balance of Vintage’s franking account on 1 July 2019 was $5,000 • Paid PAYG instalment $120,000 on 1 October 2019 

• Received a $350,000 distribution from its UK subsidiary on 1 October 2019 

• Paid a $300,000 distribution franked to 50% on 1 October 2019 • Received a distribution of $500,000 franked to 60% on 1 November 2019 

• Paid PAYG instalment $125,000 on 31 December 2019 

• Paid dividends of $250,000, fully franked, on 1 May 2020 • Received a $55,000 income tax refund on 30 May 2020

Required: 

Prepare Vintage’s franking account and calculate its balance for the year ending 30 June 2020. State what effect each transaction has on the company’s franking account, supporting your answer by referring to relevant legislation.