Listed below are several transactions that took place during the second and third years of operations for the RPG Company.
Year Year
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
In addition, you learn that the company incurred advertising costs of $ in year owed the advertising agency $ at the end of year and there were no liabilities at the end of year Also, there were no anticipated bad debts on receivables, and the rent payment was for a twoyear period, year and year
Required:
Calculate accrual net income for both years.
Determine the amount due the advertising agency that would be shown as a liability on RPGs balance sheet at the end of year
