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: (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) Based on this information alone: Prepare the December 31, Year 1, balance sheet. 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