Past event with continuous present event

in both cases, the first sentence is correct because the verb has to be past tense...

ok, thanks! appreciate it much

I`m afraid that I disagree with Region. All the sentences are grammatical and there is no need, no grammatical need for the tenses to match.

This is indirect reporting and in indirect reported speech we often use a past tense in both the reporting verb and the verbs following but again, it is not necessary.

Yesterday, John thought that the computer turns on like this (as I`m now showing you).

The kids perceived that the button is clickable.

is makes the statement more now, more current, more important.