Exercise 2-7A (Algo) Effect of accrued expenses on the accounting equation and financial statements LO 23,24 During Year 1, Chung Corporation earned $5,000 of cash revenue and accrued $3,100 of salaries expense. Required: Based on this information alone: (Hint: Record the events in accounts under an accounting eduation before satisfying the requirements.) Note: Enter any decreases to account balances with a minus sign. 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