ex 5

Life, Incorporated experienced the following events in Year 1 , its first year of operation: 1. Performed counseling services for $27,600 cash. 2. On February 1, Year 1, paid $19,200 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. 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. Prepare an income statement for the Year 1 accounting period, (Do not round intermedlate calculations.) Prepare a balance sheet for the Year 1 accounting period. (Do not round intermediate calculations.) \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{1}{|c|}{ LIFE, INC. } \\ \hline \multicolumn{1}{c|}{ Balance Sheet } \\ \hline As of December 31, Year 1 & & \\ \hline Assets & & & \\ \hline \end{tabular} LIFE, INC. Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Complete this question by entering your answers in the tabs below. Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2 ? (Do not rou intermediate calculations.)