I have to create an amortization schedule for a $20k utility deposit. We would get that deposit back only if we were to close down. How long should I amortize?
I have to create an amortization schedule for a $20k utility deposit. We would get that deposit back only if we were to close down. How long should I amortize?
A deposit on utilities is recorded with a debit to the asset account Utilities Deposit and a credit to the asset account Cash. The account Utilities Deposit will be reported as a current asset if the company expects the amount to be returned by the utilities within one year of the balance sheet date. If the deposit will not be returned within one year of the balance sheet date, it will be reported as a long-term asset.
All times are GMT -7. The time now is 04:51 PM. |