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Year 2 Year 3 $350,000 $450,000 260,000 400,000 Amounts billed to customers for services rendered Cash collected from credit customers Cash disbursements: Payment of rent

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Year 2 Year 3 $350,000 $450,000 260,000 400,000 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 80,000 140,000 30,000 15,000 0 160,000 40,000 35,000 In addition, you learn that the company incurred advertising costs of $25,000 in year 2, owed the advertising end of year 1, and there were no liabilities at the end of year 3. Also, there were no anticipated bad debts on 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 she Complete this question by entering your answers in the tabs below. Required 1 | Required 2 Calculate accrual net income for both years. Year 2 Year 3 Revenues Expenses: Rent 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 Canh collected from credit customers Cash disbursements Payment of rent Salaries paid to employees for services rendered during the year Utilities Advertising Year 2 Year 3 $350,000 $450,000 260,000 400,000 80,000 140,000 30,000 15,000 0 160,000 40,000 35,000 In addition, you learn that the company incurred advertising costs of $25,000 in year 2, owed the advertising agency $5,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate accrual net income for both years. Year 2 Year In addition, you learn that the company incurred advertising costs of $25,000 in year 2. owed the advertising agency $5,000 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 Complete this question by entering your answers in the tabs below. Required 1 Required 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

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