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Listed below are several transactions that took place during the second and third years of operations for the RPG Company, Year 3 $ 390,000 340,000
Listed below are several transactions that took place during the second and third years of operations for the RPG Company, Year 3 $ 390,000 340,000 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate accrual net income for both years. In addition, you learn that the company incurred advertising costs of $19,000 in year 2, owed the advertising agency $4,400 at the en of year 1, and there were no llabilities 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 RPC's balance sheet at the end of year 2 Revenues Expenses Year 2 Year 2 $ 290,000 200,000 Year 3 74,000 134,000 24,000 12,000 0 154,000 34,000 29,000
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