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

	Year 2			Year 3
Amounts billed to customers for services rendered	$	290,000		$	390,000
Cash collected from credit customers		200,000			340,000
Cash disbursements:
Payment of rent		74,000			0
Salaries paid to employees for services rendered during the year		134,000			154,000
Travel and entertainment		24,000			34,000
Advertising		12,000			29,000

In addition, you learn that the company incurred advertising costs of $19,000 in year 2, owed the advertising agency $4,400 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 RPGs balance sheet at the end of year 2.