Grand Strand Power & Light Provides Utilities to an East

question 168

Essay

Grand Strand Power & Light provides utilities to an east coast community.On November 30,Year 1,the utility billed 1,500 residential customers a total of $118,500 for electricity.In addition,the company is required to collect provincial taxes of 1.5% and federal excise taxes of 0.95%.Both of these taxes are used to fund the energy commission.
A) What total amount should be billed to customers for November Year 1 ?
B) Provide the journal entry to record the November billings.
C) Record the remittance of the taxes to the appropriate governmental units on December 31. Year 1.

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Definitions:

Current Financial Position

An individual's or entity's financial status at a particular point in time, considering assets, liabilities, and net worth.

Internal Users

Individuals within an organization, such as managers and employees, who use financial information to make decisions.

Future Revenues

Expected income from sales or services that a company plans to earn in upcoming periods.

Long-term Obligations

Commitments or debts that a company is required to pay over a period longer than one year, encompassing both financial and non-financial liabilities.