c. Ignoring all future events, what is the amount of rent expense that would be recognized in Year 2? (Do not round intermediate calculations)

Life, Inc. experienced the following events in Year 1, its first year of operation: 1. Performed counseling services for $32,400 cash. 2. On February 1, Year 1, paid $22,800 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 in general ledger accounts 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 Retained Earnings Assets Event Cash Prepaid Rent 1 Performed services 2 Prepaid rent 3. Used rent 0 Totals 0 b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.)