Do Utilities Go On Balance Sheet?

In the event the amounts received are so large as to distort revenues for the year in which received the amounts shall be credited to Account 253, Other Deferred Credits, and amortized by credits to this account over a period not to exceed 5 years. A. This account shall be charged with provisions for the estimated pretax effects on net income of the portions of amounts being collected subject to refund which are estimated to be required to be refunded. Such provisions shall be credited to Account 229, Accumulated Provision for Rate Refunds. A. This account shall include the net billing for electricity supplied to other electric utilities or to public authorities for resale purposes. When electricity supplied through a single meter is used for both commercial and residential purposes, the total revenue shall be included in this account, or in account 440, Residential Sales, according to the rate schedule which is applied.

416 Costs and expenses of merchandising, jobbing and contract work. It is intended that this account include only such large units as are generally self-propelled or mounted on movable equipment. Mechanical office equipment, such as accounting machines, typewriters, etc. C. The records covering meters shall be so kept that the utility can furnish information as to the number of meters of various capacities in service and in reserve as well as the location of each meter owned. C. The records covering line transformers shall be so kept that the utility can furnish the number of transformers of various capacities in service and those in reserve, and the location and the use of each transformer. Armored conductors, submarine, including insulators, insulating materials, splices in terminal chamber, potheads, etc.

Cost vs. Expense: What’s the Difference?

This may, in certain circumstances, require allocation of the cost of an allowance between months on a fractional basis. D. Rental payments on all leases shall be charged to rent expense, fuel expense, construction work in progress, or other appropriate accounts as they become payable. Likewise, any action that extends the lease beyond the expiration of the existing lease term, such as the exercise of a lease renewal option other than those already included in the lease term, shall be considered as a new agreement and shall be classified according to the above provisions. Changes in estimates or changes in circumstances shall not give rise to a new classification of a lease for accounting purposes. D. Under methods and above, the increase or reduction in current income taxes resulting from the reacquisition should be apportioned over the remainder of the original life of the issue retired or over the life of the new issue, as appropriate, as directed more specifically in paragraphs E and F below.

  • This includes things like employee wages, rent, and interest payments on debt owed to banks.
  • Average monthly operating expenses, excluding taxes, depreciation and uncollectibles, multiplied by a certain number of months.
  • This account shall include the cost of labor, materials used and expenses incurred in connection with customer service and informational activities which are not includible in other customer information expense accounts.
  • Accounts payable are expenses that come due in a short period of time, usually within 12 months.

When the remaining balance, after consideration of any related income tax expense, is less than $25,000, this account shall be charged and account 411.1 or 411.2, as appropriate, credited with such balance. When plant is disposed of by transfer to a wholly owned subsidiary the related balance in this account shall also be transferred. When the disposition relates to retirement of an item or items under a group method of depreciation where there is no tax effect in the year of retirement, no entries are required in this account if it can be determined that the related balances would be necessary to be retained to offset future group item tax deficiencies. B. At the time of retirement of depreciable electric utility plant, this account shall be charged with the book cost of the property retired and the cost of removal and shall be credited with the salvage value and any other amounts recovered, such as insurance. When retirement, costs of removal and salvage are entered originally in retirement work orders, the net total of such work orders may be included in a separate subaccount hereunder.


The depreciation and amortization applicable to the original cost of the properties purchased shall be charged to account 102, Electric Plant Purchased or Sold, and concurrently credited to the appropriate account for accumulated provision for depreciation or amortization. The costs recognized Do Utilities Go On Balance Sheet? as a result of asset retirement obligations incurred during the construction and testing of utility plant shall constitute a component of construction costs. The balances for long-term debt, preferred stock and common equity shall be the actual book balances as of the end of the prior year.

AccountDebitCreditUtilities expense00Accrued utilities00When the utility bill arrives, there will be a reversal in the accrual journal entry and the transaction will be recorded as usual. In cases whereby the company is yet to receive a utility invoice from the supplier at the period end adjusting, it can make use of the previous period invoice to make the journal entries for utilities expense if the difference from the current period has been estimated to be immaterial based on past experiences. This practice is common for the utilities expense as many companies usually only receive the current month’s invoice of the utility usage within a few days after the period-end adjusting entry. In making use of double-entry accounting, there is a need to know when to debit and when to credit accounts as these are two important accounting terms that need to be understood.

Income Statement – Accounts used to record financial activity in during the fiscal year.

B. When the consideration given for property is other than cash, the value of such consideration shall be determined on a cash basis . In the entry recording such transition, the actual consideration shall be described with sufficient particularity to identify it. The utility shall be prepared to furnish the Commission the particulars of its determination of the cash value of the consideration if other than cash. Classification of electric plant at effective date of system of accounts .

Where do you record utilities expense?

All the utility expenses are to be recorded as expenses in the account; hence they are to be debited in the profit and loss account, and in case of accrual system of accounting, they are to be charged in profit and loss account as per the actual consumption irrespective of being paid to the supplier or bill raised by …

This account shall be credited, when appropriate, with the amounts debited to Account 182.3, Other Regulatory Assets, to establish regulatory assets. This account shall also be credited, when appropriate, with the amounts debited to Account 254, Other Regulatory Liabilities, concurrent with the return of such amounts to customers through rates. Depreciation expense applicable to property included in account 104, Electric Plant Leased to Others, shall be charged to account 413, Expenses of Electric Plant Leased to Others.

MANAGE YOUR BUSINESSWhat to know about the Employee Retention Credit

If construction results, this account shall be credited with the amount applicable thereto and the appropriate plant accounts shall be charged with an amount which does not exceed the expenditures which may reasonably be determined to contribute directly and immediately and without duplication to plant. If the work is abandoned, the charge shall be to account 426.5, Other Deductions, or to the appropriate operating expense accounts. This account shall include the net salvage value of uranium, plutonium and other nuclear materials held by the company for sale or other disposition and that are not to be reused by the company in its electric utility operations.