Exercise 13-16A (Algo) Recording accrued salaries and identifying their effect on financial statements LO 13-2 On December 31, Year 1, BIG Company had accrued salaries of $8,850, Required a. Record in general Journal format the adjustment required as of December 31, Year 1. (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction Mist Journal entry worksheet Record the adjusting entry for salaries payable. Note: Enter debits before credits General Journal Debit Credit Dato Docomber 31 Record entry Clear entry View peral Journal b. Show the effect of above adjustment in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input.) BIG COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement Event Liabilities Assets Statement of Cash Flows Stockholders Equity Retained Earnings Salarios Payable Revenue Expenses - Net Income 1. C-1. Determine the amount of net income BIG would report on the Year 1 income statement, assuming that BIG received $25,600 of cash revenue. Not incomo c-2. What is the amount of net cash flow from operating activities for Year 1? Nel cash flow from oporating activities d. What amount of salaries payable would BIG report on the December 31, Year 1, balance sheet? Salaries paynble