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7. (4 points each) Freddie's Fish Store maintains saltwater aquariums for office buildings in Anchorage. The following events occurred during the first two months of 2018. Determine the net income for each month using both the cash and accrual basis. For depreciable items use straight line depreciation with no salvage value. a. In January, Freddie's purchased a new industrial vacuum for cleaning tanks - it is expected to last 5 years, and cost $5,000. b. In January, Freddie's collected $30,000 prepayment for cleaning services to be completed during January and February. c. In February, Freddie's signed a new client, collecting $6,000 for six months of services. d. In February, Freddie's paid its quarterly utility bill of $750. They are always billed this amount and pay at the end of the cycle. Cash Basis Accrual Basis January February