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    amyhall050118's Avatar
    amyhall050118 Posts: 1, Reputation: 1
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    #1

    Nov 9, 2018, 09:36 AM
    How do I amortize a utility deposit
    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?
    charangupta's Avatar
    charangupta Posts: 1, Reputation: 1
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    #2

    Dec 15, 2018, 01:16 AM
    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.

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