Chapter 2 Homework Assignment 0 Saved Help Sav 1 Exercise 2-7A (Algo) Effect of accrued expenses on the accounting equation and financial statements LO 2-3, 2-4 2.5 points During Year 1, Chung Corporation earned $5,200 of cash revenue and accrued $3,700 of salaries expense. Skipped Required Based on this information alone: (Hint: Record the events in accounts under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign.) eBook Hint Print CHUNG CORPORATION Accounting Equation - Year 1 Assets Liabilities Cash Salaries Payable + References Event Stockholders' Equity Common Retained Stock Earnings + Earned revenue Accrued salaries Ending balance 0 = 0 + 0 + 0 Chapter 2 Homework Assignment i Saved 1 a. Prepare the December 31, Year 1, balance sheet. 2.5 points CHUNG CORPORATION Balance Sheet As of December 31, Year 1 Skipped Assets eBook Hint Total assets $ 0 Print Liabilities References $ 0 Total liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 Chapter 2 Homework Assignment i Saved Help IULI HUVILILO 1 Stockholders' Equity 0 2.5 points Total stockholders' equity Total liabilities and stockholders' equity $ 0 Skipped eBook Hint Print b. Determine the amount of net income that Chung would report on the Year 1 income statement. References 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. Net cash flow from operating activities