Remove any portions of drywall that are sticking out from the hole using the utility knife.
Sand the area around the hole with medium grit sandpaper.
Apply a piece of self-adhesive drywall mesh joint tape over the hole. If one piece isn't quite wide enough, overlap two pieces of tape so the hole is covered completely.
Spread spackle over the mesh joint tape using the small putty knife. Cover the tape and fill in the holes in the mesh.
Use the large putty knife to remove any excess spackle.
Allow the spackle to dry. The spackle is dry when it no longer looks shiny or wet.
Sand the spackled area with medium-grit sandpaper until the area is smooth and flush with the surrounding wall.
Apply primer with a paintbrush or roller. Allow to dry.
Paint the area with paint matching the surrounding wall.