Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Year 2 $360,000 270,000 Year 3 $ 460,000 410,000 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 Complete this question by entering your answers in the tabs below. In addition, you learn that the company incurred advertising costs of $26,000 in year 2, owed the advertising agency $5,100 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: Required 1 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 Required 2 Net income Year 2 Year 3 81,000 141,000 0 161,000 41,000 36,000

In addition, you learn that the company incurred advertising costs of $26,000 in year 2 , owed the advertising agency $5,100 ot 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. Calculate accrual net income fot both years