Xylophone Pty Ltd is a private company with a number of shareholders who are all founders of the entity. The opening balance of the company’s franking credit account had a credit balance of $34,000. It also the following transactions in the 30 June 2021 year: 1) On 29 August 2020, it paid a $70,000 cash dividend franked to 80%. 2) On 3 September 2020, it received a $56,000 cash dividend franked to 90%. 3) On 21 September 2020, it paid a $14,000 cash dividend with franking credits of $2,600 attached. Required - Prepare a franking credit account in the space provided. Show full workings.
Xylophone Pty Ltd is a private company with a number of shareholders who are all founders of the entity. The opening balance of the company’s franking credit account had a credit balance of $34,000. It also the following transactions in the 30 June 2021 year: 1) On 29 August 2020, it paid a $70,000 cash dividend franked to 80%. 2) On 3 September 2020, it received a $56,000 cash dividend franked to 90%. 3) On 21 September 2020, it paid a $14,000 cash dividend with franking credits of $2,600 attached. Required - Prepare a franking credit account in the space provided. Show full workings.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Xylophone Pty Ltd is a private company with a number of shareholders who are all founders of the entity. The opening balance of the company’s franking credit account had a credit balance of $34,000.
It also the following transactions in the 30 June 2021 year:
1) On 29 August 2020, it paid a $70,000 cash dividend franked to 80%.
2) On 3 September 2020, it received a $56,000 cash dividend franked to 90%.
3) On 21 September 2020, it paid a $14,000 cash dividend with franking credits of $2,600 attached.
Required - Prepare a franking credit account in the space provided. Show full workings.
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