Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Year 2 Year 3 $400,000 $500,000 310,000 450,000 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 85,000 145,000 35.000 17,500 165,000 45,600 40,290 In addition, you learn that the company incurred advertising costs of $30,000 in year 2. owed the advertising agency $5,500 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 & Answer is not complete. Complete this question by entering your answers in the tabs below. Requins Required 2 Calculate accrual net income for both years. Year 3 Revenues Year 2 400 000 $ 500 000 Expenses Rent Salaries Utilities Advertising Net income (42.500) 165.000 (42,500) 145,000 35,000 (30 000) 147.500 45.000 $ Required 2 > 1 Listed below are several transactions that took place during the second and third years of operations for the RPG Company Year 2 Year 3 Stoe, eee $500,000 310,000 450,000 nts Amounts billed to customers for services rendered Cash collected from credit customers Cash disbursements: Payment of Trent Salaries paid to employees for services rendered during the year Utilities Advertising 85,000 145, eee 35, eee 17,500 165, de 45,00 40, een In addition, you learn that the company incurred advertising costs of $30,000 in year 2. owed the advertising agency 55,500 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 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 hquired 2 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 $ 23,000 8