i need all questions to be answered with thorough explanation

i need all questions to be answered with thorough explanation


Questions Please answer at least 7 or 8 of the following questions: 1.Which monthly and annual variances on the income statement require input from the onsite property management team? What are examples of questions you would ask for those line items? 2.Based upon the information provided can you identify any additional accruals that are needed? If yes, what entry needs to be recorded? 3.Based upon the information provided can you identify any additional amortization entries that are needed? If yes, what entry needs to be recorded? 4.Based upon the information provided, would you have any questions on any of the balance sheet accounts? 5.Do you have any overall questions or concerns when looking at the balances in the trial balance? 6.Based upon the information provided, what is the interest rate on the mortgage payable? 7.What journal entry(s) will you record if the real estate tax bill is paid in period 09/20 (assuming that the payment covers a period of 6 months)? 8.What journal entry(s) will you record if the real estate tax bill is paid in period 10/20 (assuming that the payment covers a period of 6 months)? 9.Do you expect there will be sufficient cash on hand to pay for the real estate tax bill in period 09/20 or 10/20? Explain why or why not. 10.What journal entry(s) will you record if the insurance bill is paid in period 09/20 (assuming that the payment covers a period of 12 months)? 11.Prepare a balance sheet using the information provided. 12.If you were auditing the books, what accounts would you highlight for further testing? For which accounts would you request more detailed back-up and why? 13.What are this company's largest sources of income and expenses? 14.How is this company doing financially? Is the net worth increasing or decreasing? How can you tell? 15.Are there any additional questions, concerns or comments you may have after looking through the financial statements and schedules? Income Statement Comparative Income Statement Income Statement by Account Category Accrual Report includes an open period. Entries are not final. Current PeriodCommentsYear-To-DateComments ActualBudgetCategory variances over 10% and $2,500 on a monthly basis.ActualBudgetCategory variances over 10% and $10,000 on an annual basis. Thru:Aug 2020Aug 2020VarianceAug 2020Aug 2020Variance INCOME OFFICE RENTS Base Rent2,500,000.002,500,000.000.000.00%20,000,000.0020,000,000.000.000.00% Pass Thru -Op Expense65,000.0075,000.00(10,000.00)-13.33%520,000.00600,000.00(80,000.00)-13.33% Pass Thru -Real Est Taxes150,000.00225,000.00(75,000.00)-33.33%1,200,000.001,800,000.00(600,000.00)-33.33% Straight-Line Rent(100,000.00)(100,000.00)0.000.00%(800,000.00)(800,000.00)0.000.00% TOTAL OFFICE RENTS2,615,000.002,700,000.00(85,000.00)-3.15%20,920,000.0021,600,000.00(680,000.00)-3.15% RETAIL RENTS Retail Base Rent25,000.0030,000.00(5,000.00)-16.67%200,000.00240,000.00(40,000.00)-16.67% Common Area Maintenance1,500.001,500.000.000.00%12,000.0012,000.000.000.00% Reimbursement - Tax5,000.005,000.000.000.00%40,000.0040,000.000.000.00% Rent Abatements(10,000.00)0.00(10,000.00)100.00%(10,000.00)0.00(10,000.00)100.00% TOTAL RETAIL RENTS21,500.0036,500.00(15,000.00)-41.10%242,000.00292,000.00(50,000.00)-17.12% PARKING Parking - Contract85,000.0087,000.00(2,000.00)-2.30%680,000.00696,000.00(16,000.00)-2.30% TOTAL PARKING85,000.0087,000.00(2,000.00)-2.30%680,000.00696,000.00(16,000.00)-2.30% ADDITIONAL TENANT SERVICE INCOME Electricity Reimbursement15,000.0030,000.00(15,000.00)-50.00%120,000.00240,000.00(120,000.00)-50.00% TOTAL ADDITIONAL TENANT SERVICE INCOME15,000.0030,000.00(15,000.00)-50.00%120,000.00240,000.00(120,000.00)-50.00% TOTAL INCOME2,736,500.002,853,500.00(117,000.00)-4.10%21,962,000.0022,828,000.00(866,000.00)-3.79% EXPENSES CLEANING Contract Cleaning Service85,000.0050,000.0035,000.0070.00%680,000.00280,000.00400,000.00142.86% Day Porter/Matron30,000.0020,000.0010,000.0050.00%240,000.00160,000.0080,000.0050.00% Trash Removal2,500.005,000.00(2,500.00)-50.00%20,000.0040,000.00(20,000.00)-50.00% TOTAL CLEANING117,500.0075,000.0042,500.0056.67%940,000.00480,000.00460,000.0095.83% REPAIRS & MAINTENANCE Payroll - Maintenance23,000.0025,000.00(2,000.00)-8.00%200,000.00200,000.000.000.00% Elevator Service Contract0.005,500.00(5,500.00)-100.00%38,500.0044,000.00(5,500.00)-12.50% Elevator R & M25,000.00500.0024,500.004900.00%25,000.0030,000.00(5,000.00)-16.67% HVAC R & M0.0010,000.00(10,000.00)-100.00%25,000.0080,000.00(55,000.00)-68.75% Electrical500.00100.00400.00400.00%18,500.0020,000.00(1,500.00)-7.50% Plumbing R & M Contract500.00500.000.000.00%4,000.004,000.000.000.00% Plumbing R & M0.00750.00(750.00)-100.00%0.00750.00(750.00)-100.00% Fire & Safety R & M0.0025,000.00(25,000.00)-100.00%0.0025,000.00(25,000.00)-100.00% Pest Control Contract150.00150.000.000.00%1,350.001,200.00150.0012.50% Interior Plant Mntnce10,000.005,000.005,000.00100.00%45,000.0040,000.005,000.0012.50% Interior Painting0.000.000.000.00%22,000.0020,000.002,000.0010.00% Other Exterior Repairs0.000.000.000.00%500.0025,000.00(24,500.00)-98.00% TOTAL REPAIRS & MAINTENANCE59,150.0072,500.00(13,350.00)-18.41%379,850.00489,950.00(110,100.00)-22.47% UTILITIES Electricity150,000.00100,000.0050,000.0050.00%1,200,000.00800,000.00400,000.0050.00% Water/Sewer15,000.0020,000.00(5,000.00)-25.00%155,000.00160,000.00(5,000.00)-3.13% TOTAL UTILITIES165,000.00120,000.0045,000.0037.50%1,355,000.00960,000.00395,000.0041.15% ROADS/ GROUNDS Landscaping Contract0.001,500.00(1,500.00)-100.00%10,500.0012,000.00(1,500.00)-12.50% Snow Removal0.000.000.000.00%0.005,000.00(5,000.00)-100.00% TOTAL ROADS/ GROUNDS0.001,500.00(1,500.00)-100.00%10,500.0017,000.00(6,500.00)-38.24% ADMINISTRATIVE Payroll - Office15,000.0017,000.00(2,000.00)-11.76%120,000.00125,000.00(5,000.00)-4.00% Management Fees(25,000.00)25,000.00(50,000.00)-200.00%150,000.00200,000.00(50,000.00)-25.00% Legal & Professional Fees125,000.000.00125,000.00100.00%125,000.005,000.00120,000.002400.00% Telephone/Pager500.00500.000.000.00%4,000.004,000.000.000.00% Computer Hardware/Sftwre1,500.001,750.00(250.00)-14.29%12,000.0014,000.00(2,000.00)-14.29% Office Supplies50.0050.000.000.00%400.00400.000.000.00% TOTAL ADMINISTRATIVE117,050.0044,300.0072,750.00164.22%411,400.00348,400.0063,000.0018.08% FIXED EXPENSES Real Estate Taxes0.001,000,000.00(1,000,000.00)-100.00%5,250,000.008,000,000.00(2,750,000.00)-34.38% Insurance0.007,500.00(7,500.00)-100.00%52,500.0060,000.00(7,500.00)-12.50% TOTAL FIXED EXPENSES0.001,007,500.00(1,007,500.00)-100.00%5,302,500.008,060,000.00(2,757,500.00)-34.21% TOTAL OPERATING EXPENSES458,700.001,320,800.00(862,100.00)-65.27%8,399,250.0010,355,350.00(1,956,100.00)-18.89% NET OPERATING INCOME (LOSS)2,277,800.001,532,700.00745,100.0048.61%13,562,750.0012,472,650.001,090,100.008.74% NON-OPERATING EXPENSES Mortgage Interest250,000.00250,000.000.000.00%2,250,000.002,000,000.00250,000.0012.50% TOTAL NON-OPERATING EXPENSES250,000.00250,000.000.000.00%2,250,000.002,000,000.00250,000.0012.50% NET INCOME (LOSS)2,027,800.001,282,700.00745,100.0058.09%11,312,750.0010,472,650.00840,100.008.02% Trial Balance AccountDebitCredit Cash - Operating100,000.00 A/R - Billed4,500,000.00 A/R - S/L Rent10,000,000.00 A/R - Other50,000.00 Deferred Leasing Comm150,000.00 Building Improvements250,000.00 Tenant Improvements500,000.00 Land Improvements25,000.00 Building Equipment350,000.00 Prepaid Real Estate Tax0.00 Prepaid Expenses5,500.00 Accounts Payable57,000.00 Accrued Expenses1,500.00 Accrued Interest250,000.00 Accrued RE Taxes2,250,000.00 Accrued Insurance Payable0.00 Security Deposits75,000.00 Prepaid Rent500.00 Mortgage Payable50,000,000.00 Contributions1,360,000.00 Distributions75,000,000.00 Retained Earnings24,527,750.00 Base Rent20,000,000.00 Pass Thru -Op Expense520,000.00 Pass Thru -Real Est Taxes1,200,000.00 Retail Base Rent200,000.00 Common Area Maintenance12,000.00 Reimbursement - Tax40,000.00 Rent Abatements10,000.00 Parking - Contract680,000.00 Electricity Reimbursement120,000.00 Contract Cleaning Service680,000.00 Day Porter/Matron240,000.00 Trash Removal20,000.00 Payroll - Maintenance200,000.00 Elevator Service Contract38,500.00 Elevator R & M25,000.00 HVAC R & M25,000.00 Electrical18,500.00 Plumbing R & M Contract4,000.00 Plumbing R & M0.00 Fire & Safety R & M0.00 Pest Control Contract1,350.00 Interior Plant Mntnce45,000.00 Interior Painting22,000.00 Other Exterior Repairs500.00 Electricity1,200,000.00 Water/Sewer155,000.00 Landscaping Contract10,500.00 Snow Removal0.00 Payroll - Office120,000.00 Management Fees150,000.00 Legal & Professional Fees125,000.00 Telephone/Pager4,000.00 Computer Hardware/Sftwre12,000.00 Office Supplies400.00 Real Estate Taxes5,250,000.00 Insurance52,500.00 Mortgage Interest2,250,000.00 Total:101,441,750.00101,441,750.00 Prepaid Expense Schedule 8/31/20 DescriptionPeriod StartPeriod EndAmount PaidMonthsMonthly AmountPrepaid Balance DC Taxes11/1/204/30/204,500,000.006750,000.00- 0 Prepaid RE Taxes750,000.00- 0 DescriptionPeriod StartPeriod EndAmount PaidMonthsMonthly AmountPrepaid Balance Insurance8/1/197/31/2090,000.00127,500.00- 0 Prepaid Insurance7,500.00- 0 DescriptionPeriod StartPeriod EndAmount PaidMonthsMonthly AmountPrepaid Balance Elevator Contract8/1/208/31/205,500.0015,500.005,500.00 Prepaid Expenses5,500.005,500.00 Accrued Expense Schedule 8/31/20 MonthVendorDescriptionGL NameAmount 5/31/20DC Treasurer2nd Half RE TaxesReal Estate Taxes750,000.00 6/30/20DC Treasurer2nd Half RE TaxesReal Estate Taxes750,000.00 7/31/20DC Treasurer2nd Half RE TaxesReal Estate Taxes750,000.00 TotalAccrued RE Taxes2,250,000.00 MonthVendorDescriptionGL NameAmount TotalAccrued Insurance Payable- 0 MonthVendorDescriptionGL NameAmount 8/31/20Chase Bank8/20 InterestMortgage Interest250,000.00 TotalAccrued Interest250,000.00 1 2 3 4 5 6 7 8 9 A B C D E Please answer at least 7 or 8 of the following questions: 1. Which monthly and annual variances on the income statement require input from the onsite property management team? What are examples of questions you would ask for those line items? 2. Based upon the information provided can you identify any additional accruals that are needed? If yes, what entry needs to be recorded? 3. Based upon the information provided can you identify any additional amortization entries that are needed? If yes, what entry needs to be recorded? 4. Based upon the information provided, would you have any questions on any of the balance sheet accounts? 5. Do you have any overall questions or concerns when looking at the balances in the trial balance? 6. Based upon the information provided, what is the interest rate on the mortgage payable? 7. What journal entry(s) will you record if the real estate tax bill is paid in period 09/20 (assuming that the payment covers a period of 6 months)?