9 Problem: Module 1 Textbook Problem 9 Learning Objective: 1-10 Show how accounting for prepaid items affects financial statements 1 points Life, Inc., experienced the following events in Year 1, its first year of operation: Hint 1. Performed counseling services for $18,800 cash. 2. On February 1, Year 1. paid $12,600 cash to rent office space for the coming year. 3. Adjusted the accounts to reflect the amount of rent used during the year. Print Required Based on this information alone: a. Record the events under an accounting equation. b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. c. Ignoring all other future events, what is the amount of rent expense that would be recognized In Year 2? Complete this question by entering your answers in the tabs below. Reg A Req B1 Inc Stmt Reg B2 Bal Sheet Req B3 CF Stmt Reqc 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 Complete this question by entering your answers in the tabs below. 1 points Reg A Req B1 Inc Stmt Req B2 Bal Sheet Req B3 CF Stmt Reqc Hint Record the events under an accounting equation. (Do not round Intermediate calculations. Enter any decreases to account balances with a minus sign.) Print LIFE, INC Effect of Events on the Accounting Equation Assets Event Prepaid Cash Ront 1. Performed counseling services 18,800 2. Prepaid rent (12,600) 12,600 3. Used rent Totals 6,200 12,600 Stockholders Equity Retained Earnings 18,800 18,800 HOQA Req B1 Inc Stmt>