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Business
Accounting
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 Year 2 Year 3 $ 350,000 $ 250,000 160,000 300,000 70,000 0 130,000 150,000 20,000 10,000 30,000 25,000 In addition, you learn that the company incurred advertising costs of $15,000 in year 2, owed the advertising agency $4,000 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. Revenues Expenses: Rent Salaries Utilities Advertising Net income Year 2 Year 3 Required 1 Required 2 >

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 Year 2 Year 3 $ 350,000 $ 250,000 160,000 300,000 70,000 0 130,000 150,000 20,000 10,000 30,000 25,000 In addition, you learn that the company incurred advertising costs of $15,000 in year 2, owed the advertising agency $4,000 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. Revenues Expenses: Rent Salaries Utilities Advertising Net income Year 2 Year 3 Required 1 Required 2 >

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 32E
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am. 125.

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 Year 2 Year 3 $ 350,000 $ 250,000 160,000 300,000 70,000 0 130,000 150,000 20,000 10,000 30,000 25,000 In addition, you learn that the company incurred advertising costs of $15,000 in year 2, owed the advertising agency $4,000 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. Revenues Expenses: Rent Salaries Utilities Advertising Net income Year 2 Year 3 Required 1 Required 2 >
Transcribed Image Text: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 Year 2 Year 3 $ 350,000 $ 250,000 160,000 300,000 70,000 0 130,000 150,000 20,000 10,000 30,000 25,000 In addition, you learn that the company incurred advertising costs of $15,000 in year 2, owed the advertising agency $4,000 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. Revenues Expenses: Rent Salaries Utilities Advertising Net income Year 2 Year 3 Required 1 Required 2 >
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