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 2020 year:

1)           On 29 August 2019, it paid a $70,000 cash dividend franked to 80%.

2)           On 3 September 2019, it received a $56,000 cash dividend franked to 90%.

3)           On 21 September 2019, it paid a $14,000 cash dividend with franking credits of $3,600 attached.

Required: Answer a) b) c)

Record your answers in the LMS spaces provided. Use whole numbers only. Do not use $, commas, full stops or cents.

a)           What will be the credit balance in the franking account at 29 August 2019? 

b)           What will be the credit balance in the franking account at 3 September 2019? 

c)            What will be the credit balance in the franking account at 21 September 2019 

Answer rating: 100% (QA)

solution date transaction debit credit balance June opening balance ... View the full answer