Help with the Part B Question: To write a memo to the manager explaining and detailing a minimum of one element of accounting that contrasts GAAP methodology with that of IFRS.

Part A is completed and as follows. It was about several transactions that took place during the second and third years of operations for the RPG Company for years 1 and 2.

Amounts 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. In addition, the Company incurred advertising costs of $27,000 in year 2, owed the advertising agency $5,200 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.

1. Part A Completed: Calculated accrual net income for both years and Determined the amount due to the advertising agency that would be shown as a liability on RPG's balance sheet at the end of year 2.