Question
Reagan Gas provides gas utilities to a wide area of eastern Illinois. During May 2013 it billed 36,000 of its residential customers located in the
Reagan Gas provides gas utilities to a wide area of eastern Illinois. During May 2013 it billed 36,000 of its residential customers located in the town of Moline a total of $3,295,000 for electricity (this is considered revenue). In addition Reagan is required to collect the following taxes: State excise tax: A tax of $5.00 per customer plus 3% of billing used to fund the Illinois Energy Commission Federal excise tax: A tax of $0.45 per customer plus 0.2% of billing used to fund the Federal Energy Commission Required: 1. Determine how much Reagan will bill these customers in total for the month of May 2013. $
Hide 2. Prepare the entry to record the billing of these amounts. If an amount box does not require an entry, leave it blank.
(Record sale)
Hide 3. Prepare the entry to record the collection of these amounts.
(Record collection of receivables)
Hide 4. Prepare the entry to record the payment of the state excise taxes to the appropriate governmental unit.
(Record payment)
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