Exercise 1-2 (Algo) Accrual accounting [LO1-2] Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Year 3 $410,000 360,000 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate accrual net income for both years. In addition, you learn that the company incurred advertising costs of $21,000 in year 2, owed the advertising agency $4,600 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. Revenues Expenses: Rent Salaries Utilities Advertising Net income Year 2 Year 3 Year 2 $ 310,000 220,000 " Prev 76,000 136,000 26,000 13,000 0 10 of 10 HH 156,000 36,000 31,000 Next >
Exercise 1-2 (Algo) Accrual accounting [LO1-2] Listed below are several transactions that took place during the second and third years of operations for the RPG Company. Year 3 $410,000 360,000 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate accrual net income for both years. In addition, you learn that the company incurred advertising costs of $21,000 in year 2, owed the advertising agency $4,600 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. Revenues Expenses: Rent Salaries Utilities Advertising Net income Year 2 Year 3 Year 2 $ 310,000 220,000 " Prev 76,000 136,000 26,000 13,000 0 10 of 10 HH 156,000 36,000 31,000 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A-3
![Exercise 1-2 (Algo) Accrual accounting [LO1-2]
Listed below are several transactions that took place during the second and third years of operations for the RPG Company.
Year 3
$410,000
360,000
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
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate accrual net income for both years.
In addition, you learn that the company incurred advertising costs of $21,000 in year 2, owed the advertising agency $4,600 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.
Revenues
Expenses:
Rent
Salaries
Utilities
Advertising
Net income
Year 2
Year 3
Year 2
$ 310,000
220,000
2 Prev
76,000
136,000
26,000
13,000
0
10 of 10
156,000
36,000
31,000
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c1718b0-3c6f-4282-8057-42defeb10e28%2F3accd181-43b9-4177-b58d-5286e799497f%2F6y3ch1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 1-2 (Algo) Accrual accounting [LO1-2]
Listed below are several transactions that took place during the second and third years of operations for the RPG Company.
Year 3
$410,000
360,000
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
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate accrual net income for both years.
In addition, you learn that the company incurred advertising costs of $21,000 in year 2, owed the advertising agency $4,600 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.
Revenues
Expenses:
Rent
Salaries
Utilities
Advertising
Net income
Year 2
Year 3
Year 2
$ 310,000
220,000
2 Prev
76,000
136,000
26,000
13,000
0
10 of 10
156,000
36,000
31,000
Next
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