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Advertising Agency Assignment | Top Universities

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December 5th, 2019

Question:

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Listed below are several transactions that took place during the second two years of operations for RPG Consulting.

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.

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Required:

1. Calculate accrual net income for both years.

2. Determine the amount due to the advertising agency that would be shown as a liability on the RPG’s balance sheet at the end of year 2. Get English Homework Help today

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