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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 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.


my answer:

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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