Meldrum Pty Limited (a private company) had the following transactions in relation to itsfranking account:DateDetailsAmount1 July 20186 Sept 20187 Sept 20189 Sept 20182 Oct 2018Opening balanceReceived a fully franked dividend from BHP Limited$2,000$49,000$25,000$56,000$6,000$49,000$5,000$56,000$6,000$50,000$42,000Paid Goods and Service TaxPaid a dividend franked to 50%Paid income tax instalmentReceived a refund of income tax11 Nov 20187 Feb 2019Paid income tax instalment14 Mar 2019Paid a dividend fully franked8 April 20193 May 2019Paid income tax instalmentPaid fringe benefits taxPaid a dividend 30% franked15 June 2019Required:a) What is the closing balance of the franking account on 30 June 2019?b) What are the consequences of the closing balance of the franking account?c) What other tax consequences are there for Meldrum Pty Limited?

The type of ledger account or statement which records only the amount related to tax is known as…

Required: a) What is the closing balance of the franking account on 30 June 2019? 5) What are the consequences of the closing balance of the franking account? -- What other tax consequences are there for Meldrum Pty Limited?

Required: a) What is the closing balance of the franking account on 30 June 2019? 5) What are the consequences of the closing balance of the franking account? -- What other tax consequences are there for Meldrum Pty Limited?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 24E

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Meldrum Pty Limited (a private company) had the following transactions in relation to its franking account: DateDetailsAmount1 July 2018Opening balance$2,0006 Sept 2018Received a fully franked dividend from BHP Limited$49,0007 Sept 2018Paid Goods and Service Tax$25,0009 Sept 2018Paid a dividend franked to 50%$56,0002 Oct 2018Paid income tax instalment$6,00011 Nov 2018Received a refund of income tax$49,0007 Feb 2019Paid income tax instalment$5,00014 Mar 2019Paid a dividend fully franked$56,0008 April 2019Paid income tax instalment$6,0003 May 2019Paid fringe benefits tax$50,00015 June 2019Paid a dividend 30% franked$42,000Required: (a)What is the closing balance of the franking account on 30 June 2019? (b)What are the consequences of the closing balance of the franking account? (c)What other tax consequences are there for Meldrum Pty Ltd? 3 / 3 125%
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