Accrued Utilities

Code: 2123
👁 Views: 177

Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Utility expenses due for the current period not yet paid

Common Journal Entries

Accrue electricity bill

Dr. Electricity Expense
Cr. Accrued Utilities

Pay accrued utility bills

Dr. Accrued Utilities
Cr. Bank Account

Accrue water bill

Dr. Water Expense
Cr. Accrued Utilities

Year-end accrued utilities adjustment

Dr. Utilities Expense
Cr. Accrued Utilities

Accrue electricity bill

Dr. Electricity Expense
Cr. Accrued Utilities

Pay accrued utility bills

Dr. Accrued Utilities
Cr. Bank Account

Accrue water bill

Dr. Water Expense
Cr. Accrued Utilities

Year-end accrued utilities adjustment

Dr. Utilities Expense
Cr. Accrued Utilities

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 37 Provisions, Contingent Liabilities and Assets
US GAAP ASC 405 Liabilities

❓ Frequently Asked Questions

Q: How are accrued utilities estimated if the bill has not arrived?

A: Based on average monthly consumption or the last available bill, then adjusted when the actual bill is received.