During Year 1, Chung Corporation earned $5,600 of cash revenue and accrued $4,200 of salaries expense....

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During Year 1, Chung Corporation earned $5,600 of cash revenue and accrued $4,200 of salaries expense. Required: Based on this information alone: (Hint: Record the events in accounts under an accounting equation before satisfying the requirements.) Note: Enter any decreases to account balances with a minus sign. CHUNG CORPORATION Accounting Equation - Year 1 Assets Event Cash Earned revenue Accrued salaries Ending balance Liabilities + Salaries Payable 0 0+ ++ a. Prepare the December 31, Year 1, balance sheet. Assets CHUNG CORPORATION Balance Sheet As of December 31, Year 1 Total assets Liabilities Total liabilities Stockholders' Equity Stockholders' Equity Common Retained + Stock Earnings +++ + 0 $ 0 $ 0 Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0 b. Determine the amount of net income that Chung would report on the Year 1 income statement. Net income c. Determine the amount of net cash flow from operating activities that Chung would report on the Year 1 statement of cash flows. During Year 1, Chung Corporation earned $5,600 of cash revenue and accrued $4,200 of salaries expense. Required: Based on this information alone: (Hint: Record the events in accounts under an accounting equation before satisfying the requirements.) Note: Enter any decreases to account balances with a minus sign. CHUNG CORPORATION Accounting Equation - Year 1 Assets Event Cash Earned revenue Accrued salaries Ending balance Liabilities + Salaries Payable 0 0+ ++ a. Prepare the December 31, Year 1, balance sheet. Assets CHUNG CORPORATION Balance Sheet As of December 31, Year 1 Total assets Liabilities Total liabilities Stockholders' Equity Stockholders' Equity Common Retained + Stock Earnings +++ + 0 $ 0 $ 0 Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0 b. Determine the amount of net income that Chung would report on the Year 1 income statement. Net income c. Determine the amount of net cash flow from operating activities that Chung would report on the Year 1 statement of cash flows.

Answer rating: 100% (QA)

To solve this problem we need to record the events in the accounting equation and then use the infor... View the full answer