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mwarby96
Level 1
posted
‎October 18, 2020 03:27 PM
last updated ‎October 18, 2020 3:27 PM

Electric Company Security Deposit Refund

Helping a friend with her books.  Her electric company security depost of $1,000 was recorded in QBO as a current asset in 2018.  In 2019 the electric company applied the $1000 deposit towards the August bill.  The balance of that months bill was paid. She does not input her monthly utility bills into QBO.  She does download all of her bank transactions so only the payments made towards the utility bill is recorded each month.  Her Chart of Accounts still shows a $1,000 balance listed for the current asset - Electric Security Deposit.  What steps do I take to get the balance to $0?  I am assuming a journal entry would apply here.  I know I would credit the Security Deposit,  but I am not sure what account I should debit.

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Best answer October 18, 2020
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MJoy_D
Moderator
Moderator
‎October 18, 2020 04:40 PM

Electric Company Security Deposit Refund

I can help you in recording these transactions, @mwarby96.

 

You can use an Account's Payable to your Journal entry to apply this payment to the bill. However, it will always be best to consult an account or tax advisor to get advised what account to use with your transactions. 

 

To create a journal entry:

  1. Click the + New button.
  2. Choose Journal Entry. 
  3. Provide all the necessary to create your journal entry.
  4. Select Save and new or Save and close. 

Check this article for more information: Create a journal entry in QuickBooks Online. Also, you can check this article on how to enter a journal entry that adjusts an account's total balance: Enter adjusting journal entries in QuickBooks Online Accountant. 

 

Let me know if there's anything that I can help. I'm always here to assist. Have a great rest of the day!

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1 Comment 1
MJoy_D
Moderator
Moderator
‎October 18, 2020 04:40 PM

Electric Company Security Deposit Refund

I can help you in recording these transactions, @mwarby96.

 

You can use an Account's Payable to your Journal entry to apply this payment to the bill. However, it will always be best to consult an account or tax advisor to get advised what account to use with your transactions. 

 

To create a journal entry:

  1. Click the + New button.
  2. Choose Journal Entry. 
  3. Provide all the necessary to create your journal entry.
  4. Select Save and new or Save and close. 

Check this article for more information: Create a journal entry in QuickBooks Online. Also, you can check this article on how to enter a journal entry that adjusts an account's total balance: Enter adjusting journal entries in QuickBooks Online Accountant. 

 

Let me know if there's anything that I can help. I'm always here to assist. Have a great rest of the day!

Reply Join the conversation
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