Exercise 2-7A (Algo) Effect of accrued expenses on the accounting equation and financial statem LO 2-3, 2-4 During Year 1, Chung Corporation earned $6,900 of cash revenue and accrued $3,800 of salaries expense. 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.) Answer is not complete. + Event CHUNG CORPORATION Accounting Equation - Year 1 Assets Liabilities Salaries Cash + Payable 6.900 0 0 6,000 X 6,900 6,000 Stockholders' Equity Common Retained + Stock Earnings 0 + 6.900 + + + Earned revenue Accrued salaries Ending balance + 0 + 6,900 a. Prepare the December 31, Year 1, balance sheet. Prey Next > 1 of 6 a. Prepare the December 31, Year 1, balance sheet. Answer is complete but not entirely correct. CHUNG CORPORATION Balance Sheet As of December 31, Year 1 Assets Cash $ 6,900 $ 6,900 Total assets Liabilities Salaries payable $ 6,000 $ 6,000 Total liabilities Stockholders' Equity Retained earnings 6,900 Total stockholders' equity Total liabilities and stockholders' equity 6,900 $ 12,900 Help Save Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate compleu R 1 Total stockholders' equity Total liabilities and stockholders' equity 6.900 $ 12,900 b. Determine the amount of net income that Chung would report on the Year 1 income statement Answer is complete but not entirely correct. $ 6,900 $ 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