explain how youd record three transaction each of which has a worksheet showing the components of the following costs:

• The monthly lease bill from the landlord.
• The monthly bill from Verizon for various telecom services.

Crosscut has a 20-year lease for its office space that includes fixed monthly lease payments for the three floors the company occupies. In addition, the lease includes quarterly charges incurred by the building owner that are normally passed through to tenants as part of standard NYC lease agreements. This includes charges for utilities (water and electric) incurred by the landlord and billed back to the tenants. In addition, each tenant is billed directly by utilities for heating and electricity based on their individual usage. The landlord charges tenants for use of the freight elevators which city building code mandates must be operated by a qualified employee of the building when the tenant requires use of the freight elevator when they are having construction done or moving furniture in or out of the office. Crosscut accounts for its lease as an operating lease and all charges from the landlord are expensed as incurred.

The office lease expressly identifies the building maintenance responsibilities of both the landlord and the tenant. Crosscut regularly has maintenance done relating to the air conditioning for their IT equipment room, audio visual equipment in their conference rooms as well as miscellaneous plumbing work needed for the kitchen and bathrooms.

The company keeps a tight rein on costs and consolidated its telecom needs with a single provider, Verizon. After receiving competitive bids, they had Verizon bundle all their telecom requirements which includes telephone land lines, Internet access, cell phones (for certain employees) and a cable TV feed for the conference rooms and reception area.

Verizons monthly telephone bill identifies both variable and fixed charges. Variable charges include each employees usage of their office telephone extension and cell phones. The office telephone bill also includes fixed line charges for each extension. Verizons bills also include Federal Excise taxes on various parts of the services they provide as well as charges for regularly scheduled maintenance on the system.

While employees are allowed to use company phones for routine personal calls, they are expressly forbidden, except in emergencies, from using company phones for long distance calls or calls that extend beyond 15 minutes. Internet access and cable TV are both charged at fixed monthly rates but also include monthly charges for excise taxes and quarterly charges for system maintenance. The Verizon bill is reviewed and approved by the Finance Department each month.

The company also hires a cleaning company to go through the office each evening to remove refuse and clean the office. From time-to-time Crosscut engages licensed plumbers, electricians and carpenters to do maintenance on their office facilities as allowed under the terms of their lease agreement.

Crosscut makes sure the office is well supplied with traditional office supplies, computer supplies (flash drives, pointing devices, cables, etc.) as well as cleaning supplies for the cleaning crew. Cleaning supplies include mops, brooms, dust pans, cleaning fluids, rags, etc.

Fixed assets are depreciated and amortized in accordance with generally accepted accounting principles on a straight-line basis