Effect of rent transactions on statement of cash flows. A firm reported a balance in its Prepaid Rent (Advances to Landlords) account of $1,200 on January 1, Year 12, for use of the building for the month of January, Year 12. On February 1, Year 12. the firm paid $18,000 as the annual rental for the period from February 1, Year 12 to January 31. Year 13. It recorded this rental payment by debiting Prepaid Rent (Advances to Landlord) and crediting Cash for

$18,000. At the end of Year 12, the firm made all proper adjusting entries to correctly report balance sheet and income statement amounts. Using the format of Exhibit 4.12. indicate the effects of all these transactions on the firm's statement of cash Hows for Year 12.