Aggie Pipeline Company works with a gas marketer to identify gas available at a receipt point on its pipeline. The spot price quoted by the marketer was $1.90 per MMBtu.

During July 2009, Lucky received at the receipt point 4,000,000 MMBtu and delivered this gas to its storage field. There was no other pipeline or storage activity during the month.

REQUIRED:

Prepare the journal entries to record the above activities.