7. value: 11.00 points Exercise 2-15A Prepaid items on financial statements LO 2-6 Life, Inc. experienced the following events in 2016, its first year of operation: 1. Performed counseling services for $28,400 cash 2. On February 1, 2016, paid $19,800 cash to rent office space for the coming year 3. Adjusted the accounts to reflect the amount of rent used during the year Required Based on this information alone: a. Record the events under an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.) LIFE, INC. Effect of Events on the Accounting Equation Stockholders Equity Assets Event Retained Cash Prepaid Rent Earnings 1 Performed services 28,400 28.400 2 Prepaid rent (19,800) 19.800 3 Used rent Totals 8,600 19.800= 28.400