Homework Part $2$

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

$\backslash$table$[[,$Year $2,$Year $3],[$Amounts billed to customers for services rendered,$ $430,000,$$ $530,000],[$Cash collected from credit customers,$340,000,480,000],[$Cash disbursements:,$88,000,0],[$Salaries paid to employees for services rendered during the year,$148,000,168,000],[$Utilities$,38,000,48,000],[$Advertising$,19,000,43,000]]$

In addition, you learn that the company incurred advertising costs of $$33,000$ in year $2,$ owed the advertising agency $$5,800$ 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:

Calculate accrual net income for both years.

Determine the amount due the advertising agency that would be shown as a liability on RPG$\text{'}$s balance sheet at the end of year $2.$

Complete this question by entering your answers in the tabs below.

Required $2$

Calculate accrual net income for both years.

$\backslash$table$[[,$Year $2,$Year $3],[$Revenues$,$$ $430,000,$$ $530,000],[$Expenses:$,,],[$Rent$,44,000,44,000],[$Salaries$,148,000,168,000],[$Utilities$,38,000,48,000],[$Advertising$,33,000,],[$Net income,$ $167,000,]]$