Exercise 1-2 (Algo) Accrual accounting (LO1-2) Listed below are several transactions that took place during the second and third years of operations for the RPG Company Year 2 Year 3 $380,000 $480,000 290,000 430,000 Anounts billed to customers for services rendered Cash collected from credit customers Cash disbursements: Payment of rent Salaries paid to employees for services rendered during the year Utilities Advertising 83,000 143,000 33,000 16,500 163,000 43,000 38,000 In addition, you leam that the company incurred advertising costs of $28,000 in year 2, owed the advertising agency $5,300 at the end of year 1, and there were no liabilities at the end of year 3. Also, there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3. Required: 1. Calculate accrual net income for both years. 2. Determine the amount due the advertising agency that would be shown as a liability on RPG's balance sheet at the end of year 2. Complete this question by entering your answers in the tabs below. Prev 1 of 6 Next > Required: 1. Calculate accrual net income for both years. 2. Determine the amount due the advertising agency that would be shown as a liability on RPG's balance sheet at the end of yea Complete this question by entering your answers in the tabs below. Required 1. Required 2 Calculate accrual net income for both years. Year 2 Year 3 Revenues Expenses Rent Salaries Utilities Advertising Net income Required 2 > Required: 1. Calculate accrual net income for both years, 2. Determine the amount due the advertising agency that would be shown as a liability on RPG's balance sheet at the end of year 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the amount due the advertising agency that would be shown as a liability on RPG's balance sheet at the end of year 2 Advertising liability at end of Your 2