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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 $5,000 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 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 Assets Cash Liabilities + Salaries Payable + Stockholders' Equity Common Stock + Retained Earnings

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 $5,000 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 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 Assets Cash Liabilities + Salaries Payable + Stockholders' Equity Common Stock + Retained Earnings

FINANCIAL ACCOUNTING
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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204.

Subject  :- Accounting 

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 $5,000 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 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 11 Assets Cash Liabilities + Salaries Payable + Stockholders' Equity Common Stock + Retained Earnings
Transcribed Image Text: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 $5,000 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 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 11 Assets Cash Liabilities + Salaries Payable + Stockholders' Equity Common Stock + Retained Earnings
a. Prepare the December 31, Year 1, balance sheet. Assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Show Transcribed Text CHUNG CORPORATION Balance Sheet As of December 31, Year 1 b. Determine the amount of net income that Chung would report on the Year 1 income statement. 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
Transcribed Image Text:a. Prepare the December 31, Year 1, balance sheet. Assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Show Transcribed Text CHUNG CORPORATION Balance Sheet As of December 31, Year 1 b. Determine the amount of net income that Chung would report on the Year 1 income statement. 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
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