A. Prepare the December 31, year 1, balance sheet? B. Determine the amount of ne
ID: 2337237 • Letter: A
Question
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 the Chung would report on year 1 statement of cash flows? Chapter 2 H nect.mheducation.com/flow/connect.html Help Save During Year 1, Chung Corporation earned $8,000 of cash revenue and accrued $5,000 of salaries expense. Required Based on this information alone: (Hint Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign.) CHUNG CORPORATION Accounting Equation Year 1 Stockholders' Equity Common toc
Explanation / Answer
Balance sheet
Assets
Cash 8000
Liabilities 5000
Shareholders equity
Retained earnings 3000
Liabilities and shareholders equity 8000
B.
Revenue 8000
Salaries expense 5000
Net income 3000
C
Net cash flow from operating activities
Cash revenue 8000
Assets = Liabilities + Shareholders equity Cash Salaries payable Common stock Retained earnings Earned revenue 8000 8000 Accrued salaries 5000 -5000 Ending balance 8000 5000 0 3000