Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Amounts billed to customers for services rendered Year 2 $ 370,000 Cash collected from credit customers 280,000 Year 3 $ 470,000 420,000 Cash disbursements: Payment of rent 82,000 0 Salaries paid to employees for services rendered during the year Utilities 142,000 32,000 Advertising 16,000 162,000 42,000 37,000 In addition, you learn that 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. 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 Calculate accrual net income for both years. Revenues Expenses: Rent Salaries Utilities Advertising Net income Year 2 Year 3 Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Amounts billed to customers for services rendered Year 2 $ 370,000 Cash collected from credit customers 280,000 Year 3 $470,000 420,000 Cash disbursements: Payment of rent 82,000 0 Salaries paid to employees for services rendered during the year Utilities 142,000 162,000 32,000 42,000 Advertising 16,000 37,000 In addition, you learn that 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. 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 Year 2 < Required 1 Required 2 >