(Solved): Exercise 2-2A (Static) Effect of accrued expenses on the accounting equation and financial statement ...

Exercise 2-2A (Static) Effect of accrued expenses on the accounting equation and financial statements LO 2-2, 2-3 During Year 1, Chung Corporation earned \( \$ 8,000 \) of cash revenue and accrued \( \$ 5,000 \) of salaries expense. Required Based on this information alone: (Hint. Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) a. Prepare the December 31, Year 1, balance sheet. b. Determine the amount of net income that Chung would report on the Year 1 income statement. c. Determine the amount of net cash flow from operating activities that Chung would report on the Year 1 statement of cash flows. Complete this question by entering your answers in the tabs below. Accounting Equation Based on this information alone: (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) Note: Not all cells require input. Enter any decreases to account balances with a minus sign. Based on this information alone: (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) Note: Not all cells require input. Enter any decreases to account balances with a minus sign.Salaries PayableCommon StockRetained Earnings0 Prepare the December 31, Year 1, balance sheet. \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{CHUNG CORPORATION} \\ \hline \multicolumn{2}{|c|}{Balance Sheet} \\ \hline \multicolumn{2}{|c|}{As of December 31, Year 1} \\ \hline Assets & \\ \hline & \\ \hline & \\ \hline Total assets & \$ 0 \\ \hline Liabilities & \\ \hline & \\ \hline & \\ \hline Total liabilities & \$ 0 \\ \hline Stockholders' Equity & \\ \hline & \\ \hline & \\ \hline Total stockholders' equity & 0 \\ \hline Total liabilities and stockholders' equity & \$ 0 \\ \hline \end{tabular} Req A Req B and C Determine the amount of net income that Chung would report on the Year 1 income statement. Determine the amount of net cash flow from operating activities that Chung would report on the Year 1 statement of cash flows. b. Net income c. Net cash flow from operating activities