Problem 3-11on january 1, 2017, norma smith and grant wood formed a computer sales and service company in soapsville, arkansas, by investing $91,164 cash. the new company, ayayai sales and service, has the following transactions during january.1. pays $12,000 in advance for 3 months’ rent of office, showroom, and repair space.2. purchases 45 personal computers at a cost of $1,656 each, 11 graphics computers at a cost of $2,656 each, and 30 printers at a cost of $456 each, paying cash upon delivery.3. sales, repair, and office employees earn $13,764 in salaries and wages during january, of which $4,164 was still payable at the end of january.4. sells 35 personal computers at $2,706 each, 9 graphics computers for $3,756 each, and 20 printers for $656 each; $76,164 is received in cash in january, and $65,470 is sold on a deferred payment basis.5. other operating expenses of $9,564 are incurred and paid for during january; $3,164 of incurred expenses are payable at january 31.1) using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual-basis income statement for the month of january.2) using the transaction data above, prepare (1) a cash-basis balance sheet and (2) an accrual-basis balance sheet as of january 31, 2017.