During Year 1, Chung Corporation earned $5,100 of cash revenue and accrued $3,400 of salaries expense.Required:Based on this information alone: (Hint: Record the events in accounts under an accounting equation before satisfying therequirements.)Note: Enter any decreases to account balances with a minus sign.EventEarned revenueAccrued salariesEnding balanceCHUNG CORPORATIONAccounting Equation - Year 1LiabilitiesSalariesPayableAssetsCash0 =++0 +Stockholders' EquityCommonStockPERNIKI++0 +RetainedEarnings0 a. Prepare the December 31, Year 1, balance sheet.AssetsTotal assetsLiabilitiesTotal liabilitiesStockholders' EquityCHUNG CORPORATIONBalance SheetAs of December 31, Year 1Total stockholders' equityTotal liabilities and stockholders' equityNet incomeHENS$Net cash flow from operating activitiesSA$00b. Determine the amount of net income that Chung would report on the Year 1 income statement.00c. Determine the amount of net cash flow from operating activities that Chung would report on the Year 1 statement of cash flows.

The Balance Sheet is a financial statement that includes assets, liabilities and stockholder's…

During Year 1, Chung Corporation earned $5,100 of cash revenue and accrued $3,400 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. Event Earned revenue Accrued salaries Ending balance CHUNG CORPORATION Accounting Equation - Year 1 Liabilities + Salaries Payable Assets Cash = = = 0 = + + + 0 + Stockholders' Equity Common Stock 0 + + + Retained Earnings 0

During Year 1, Chung Corporation earned $5,100 of cash revenue and accrued $3,400 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. Event Earned revenue Accrued salaries Ending balance CHUNG CORPORATION Accounting Equation - Year 1 Liabilities + Salaries Payable Assets Cash = = = 0 = + + + 0 + Stockholders' Equity Common Stock 0 + + + Retained Earnings 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 31, Year 2, Kimberly Company had the following normal account balances in its general ledger. The accounts are listed in random order. Salaries expense $ 18,900 Buildings 87,000 Retained earnings 1/1/Year 2 17,000 Operating expense 103,900 Cash 27,000 Accounts payable 16,000 Bonds payable 32,000 Accounts receivable 26,000 Common stock 57,000 Sales revenue 157,000 Prepaid rent 16,200 Required: Use the information regarding normal account balances to prepare a trial balance
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