USA closing costs

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I work for a subsidiary and the parent company gave signing authority to purchase land and a new building. I received billing from the title company and the lawyer. I will be paying these fees and costs of behalf of the parent company. Not sure what's the best treatment to record in our books. Since the assets are not mine, I know I will not create new fixed asset. I need to book the fees and bill back to the parent. Treat like prepayment for parent or customer deposit?

pay the title company:
dr other receivables/other deposit
cr cash

charge back to parent (don't have due from/due to in chart of accounts):
cr other receivables/other deposit
dr cash
 
Last edited:

bklynboy

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Offset cash against intercompany payable/receivable.
 

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