Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Year 2 Year 3 Amounts billed to customers for services rendered $ 400,000 $ 500,000 Cash collected from credit customers 310,000 450,000 Cash disbursements: Payment of rent 85,000 0 Salaries paid to employees for services rendered during the year 145,000 165,000 Utilities 35,000 45,000 Advertising 17,500 40,000 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 RPGs balance sheet at the end of year 2