b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. Note: In statement of cash flows, cash outflows should be indicated with a minus sign. c. Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2? Exercise 3-4A (Algo) Prepaid items on financial statements LO 3-2 Life, Incorporated experienced the following events in Year 1, its first year of operation: 1. Performed counseling services for $30,000 cash. 2. On February 1, Year 1, paid $21,000 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 in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign