Exercise 2-7A (Algo) Effect of accrued expenses on the accounting equation and financial statements LO 2-3, 2-4 During Year 1, Chung Corporation earned $5,400 of cash revenue and accrued $3,600 of salaries expense. Required: Based on this information alone: (Hint: Record the events in accounts under an accounting equation before satisfying the requirements.) Note: Enter any decreases to account balances with a minus sign. CHUNG CORPORATION Accounting Equation-Year 1 Assets Event Cash Earned revenue Accrued salaries Ending balance Liabilities + Stockholders' Equity Salaries Common + Payable Stock Retained Earnings + + + a. Prepare the December 31, Year 1, balance sheet. CHUNG CORPORATION Chee