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 ?[/QUOTE]



sorry, what if it says that the company owes each of these companies about $ 200 to $225

OK is this homewrok? And they told you to adjust entries to show the actual balance or to put the entries to create a final balance?

Olk if they are already record in utility expense but you still owe them just debit accounts payable or whatever this transaction was posted on and credit cash

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Originally Posted by John_eard

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 ?

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Sorry, what if it says that the company owes each of these companies about $ 200 to $225[/QUOTE]
In the first case you need to record the expenses as accrued,Dr.Utility expense and Cr.accounts payable, because since you haven't received any bills from any of the utility companies no cash can't go out from your company, and then when the bills are actually received if what you owe is any different that what you record you just need to record the difference for the utility expense as a debit , and also Dr.Accounts payable and credit cash for the whole amount being pay.
Now in the sencond case if you actually received the bills, but the company is not sending a payment yet you will record the utility expense as accrued, Dr.utility expense and Cr.Accounts payable, but if the company is sending the payment you need to Cr. Cash instead of the accounts payable.