Reagan Gas provides gas utilities to a wide area of eastern Illinois. During the month...

70.2K

Verified Solution

Question

Accounting

Reagan Gas provides gas utilities to a wide area of eastern Illinois. During the month of May, it billed 22,700 of its residential customers located in the town of Moline a total of $2,430,000 for electricity (this is considered revenue). In addition, Reagan is required to collect the following taxes:
State Excise Tax: A tax of $3.00 per customer plus 2% of billing used to fund the Kentucky Energy Commission
Federal Excise Tax: A tax of $0.50 per customer plus 0.1% of billing used to fund the Federal Energy Commission
Required:
When required, round your answers to two decimal places.
1. Determine how much Reagan will bill these customers in total for the month of May.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students