[John_eard]

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 ?

[student 101]

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

[qcmar24]

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.)