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 ITAA36. 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%; and
· it had a $90,000 PAYG instalment due on 21 April, but did not pay it until 3 July in the following income year.
Prepare the company's franking account for this income year.
date Description Dr Cr balance
opening balance 7000 7000
18 July PAYG instalment payment 30000 37000
29 Aug Franked dividend to 80% 12000 49000
3 Sept Franked dividend to 90% 10800 59800
21 Sept Franked dividend to $1800 1800 61600
5 Oct Unfranked deemed dividend 21000 40600
2 Feb Tax refund 18000 22600
10 March Franked dividend to 95% 8143 30743
3 July PAYG instalment payment 90000 120743
am i correct ?
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