Exercise 2-11 Prepaid items on financial statements LO 2-4 Life, Inc., experienced the following events in 2018, its first year of operation: 1. Performed counseling services for $23,600 cash. 2. On February 1, 2018, paid $16,200 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 under an accounting equation. b. Prepare an income statement, balance sheet, and statement of cash flows for the 2018 accounting period. c. Ignoring all other future events, what is the amount of rent expense that would be recognized in 2019? Complete this question by entering your answers in the tabs below. Req A Req B1 Inc Stmt Req B2 Bal Sheet Req B3 CF Stmt Req C 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 Assets Prepaid Stockholders Equity Retained Prev 1 of 4 Next > 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 2018 accounting period. c. Ignoring all other future events, what is the amount of rent expense that would be recognized in 2019? Complete this question by entering your answers in the tabs below. Req B1 Inc Req B2 Bal Req A Req B3 CF Stmt Sheet Req C Stmt 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' Assets Event Cash Prepaid. Rent Equity Retained Earnings 1. Performed counseling services 2 Prepaid rent 3 Used rent Totals Reg A Req B1 Inc Stmt