The following information relates to Eagles Ltd. who had a credit balance of $10,000 in their franking
Question:
The following information relates to Eagles Ltd. who had a credit balance of $10,000 in their franking account at 30 June 2019.
DATE ITEM $
Company Tax Paid
1 December 2019 Payment of company tax 70,000
Other Taxes Paid
28 April 2020 Fringe benefits tax paid 35,000
Dividends Received
10 August 2019 Receipt of an unfranked dividend from a public company 60,000
20 October 2019 Receipt of a fully franked dividend from a private company 105,000
16 April 2020 Receipt of dividend franked to 70% from a private company 200,000
Dividends Paid
30 September 2019 Payment of dividend franked to 80% 140,000
18 June 2020 Payment of dividend franked to 50% 420,000
Required: Based on the information provided by Eagles Pty Ltd, the directors have asked you to prepare a running balance franking account for the year ended 30 June 2020. They are also seeking an explanation on the effect of each listed item in the information they have provided to you.
Expert Answer:
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
