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 Cash collected from credit customers Year 2 $ 420,000 Year 3 $520,000 330,000 Cash disbursements: 470,000 Payment of rent 87,000 0 Salaries paid to employees for services rendered during the year 147,000 167,000 Utilities 37,000 47,000 Advertising 18,500 42,000 In addition, you learn that the company incurred advertising costs of $32,000 in year 2, owed the advertising agency $5,700 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 Year 2 Year 3 $ 420,000 $ 520,000 43,500 43,500 147,000 167,000 Utilities 37,000 47,000 Advertising 32,000 42,000 Net income $ 168,300 $ 188,500 Required 2 >