Prepaid Utility Deposit On Balance Sheet

Prepaid Utility Deposit On Balance Sheet

Prepaid Utility Deposit On Balance Sheet

Where is a prepaid expense deposit to open a utility account listed on the balance sheet?

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Dec 10, 2017
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starstarstarstarstar 		Prepaid Down Payment on Balance Sheet
by: Stephanie

Thank you for your question about where a prepaid deposit for a utility expense account should be listed on the balance sheet.

You should list the transaction as:

DEBIT Down Payments
CREDIT Cash Bank Asset Account

CREDIT Down Payments
CREDIT Utility Accounts Payable

By doing this, you are turning as asset (the down payment) into an expense when you get and pay the vendor utility bill.

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