Problems: 1. Cash-basis versus Accrual-basis accounting (7 points) The following information pertains to Srini's Vinyl, Inc.: January 1" a. Finance with $50,000; $20,000 is from Srini's savings account and $30,000 is borrowed, at 6% annual interest interest payable on December 31). b. Buy a computer and some fixtures, with an economic life of 3 years, for $9.000 c. Sign an annual lease for a store and pre-pay $6.[XO rent for January - March d. Obtain a property / liability insurance policy and pre-pay the $2,400 annual premium. c. Acquire $40,6X0 of vinyl records, paying $10,000 in cash and the rest due in 120 days. January 1" through March 314 1. Sell 10% of the vinyl records (cost $4,000) for $12,000; receiving $6,000 in cash and the rest is due within 120 days. 2. Pay $1,500, in cash, in salaries for the period from January 1 through March 31. Required: Provide Quarterly Operating Performance Reports' using cash- and accrual-basis accounting. Srini's Vinyl, Inc. January - March "Cash-Basis" Accounting "Accrual-Basis" Accounting Page 5