Listed below are several transactions that took place during the second and third years of operations for RPG Consulting.

	Year 2			Year 3
Amounts billed to customers for services rendered	$	360,000		$	460,000
Cash collected from credit customers		270,000			410,000
Cash disbursements:
Payment of rent		81,000			0
Salaries paid to employees for services rendered during the year		141,000			161,000
Travel and entertainment		31,000			41,000
Advertising		15,500			36,000

In addition, you learn that the company incurred advertising costs of $26,000 in year 2, owed the advertising agency $5,100 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.
	Revenues YR 2 YR3
	360,000 360,000 EXPENSES: RENT ? ? SALARIES ? ? TRAVEL ? ? ADVERTISING ? ? NET INCOME ? ? 2. DETERMINE THE AMOUNT DUE THE ADVERTISING AGENCY THAT WOULD BE SHOWN AS A LIBILITY ON RPG'S BALANCE SHEET AT THE END OF YR 2......?