The following information pertains to Srinis Vinyl, Inc.:

January 1^st

a. Finance with $50,000; $20,000 is from Srinis 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 $6,000 rent for January March

d. Obtain a property / liability insurance policy and pre-pay the $2,400 annual premium.

e. Acquire $40,000 of vinyl records, paying $10,000 in cash and the rest due in 120 days.

January 1^st through March 31^st

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.

Srinis Vinyl, Inc.

January March

Cash-Basis Accounting Accrual-Basis Accounting