Exercise 2-11A (Algo) Prepaid items on financial statements LO 2-6, 2-8 Life, Inc., experienced the following events in Year 1, its first year of operation: 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. 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. Req B1 Inc Req A Req B2 Bal Stmt 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 Stockholders' Assets Event Cash Prepaid Rent Equity Retained Earnings 1. Performed counseling services