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 Cash disbursements: Payment of rent Salaries paid to employees for services rendered during the year Year 2 Year 3 $450,000 $550,000 360,000 500,000 0 90,000 150,000 $170,000 Utilities Advertising 40,000 50,000 20,000 45,000 In addition, you learn that the company incurred advertising costs of $35,000 in year 2, owed the advertising agency $6,000 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. Calculate accrual net income for both years.. Revenues Expenses: Rent Salaries Utilities Advertising Net income Year 2 Year 3 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