This exercise is about a private company called Dividend Payer Pty Ltd $($hereafter referred to as DP$),$

and its franking account for the period $1$ July $2023$ to $30$ June $2024.$ Assume the corporate tax rate that

applies to all transactions and events is $30\%.$ In this exercise, you must prepare a franking account

based on the information presented below, using this five$-$column format:

Date Transaction or event Debit Credit Balance

$$ The opening credit balance of DP$$s franking account on $1$ July $2023$ is $$160,000.$

$$ DP makes a PAYG income tax instalment payment of $$280,000$ on $28$ July $2023.$

$$ DP pays a dividend of $$1,050,000$ on $1$ September $2023,$ with franking credits of $$450,000$

attached.

$$ DP receives dividends of $$78,000,$ franked at $75\%,$ on $19$ October $2023.$

$$ DP makes a PAYG income tax instalment payment of $$400,000$ on $28$ October $2023.$

$$ DP pays a dividend of $$1,050,000$ on $1$ February $2024,$ with franking credits of $$405,000$

attached.

$$ DP receives an income tax refund of $$16,000$ on $14$ February $2024.$

$$ DP makes a PAYG income tax instalment payment of $$57,000$ on $1$ July $2024.$