it gets complicated the adj entries

there is another one which is confusing to me :
as of June 30, no bills had been received (utility). However from past experience shows that the company owes 2 utility companies about $ 200 and $ 225. Can these values be used to adjust the entry ?

OK if is just to adjust
Utility expense... 425debit
Cash... 425credit
To paid utility bill expense

Quote:

---

Originally Posted by student 101

ok if is just to adjust
utility expense............425debit
Cash.......................425credit
to paid utility bill expense

---

No bills have been received so cash cannot be affect.
The entry would be
Dr.Utility expense
Cr.accounts payable (unless your company has a specific account to record accrued utility expense.)