Exercise 3-4A (Algo) Prepaid items on financial statements LO 3-2 Life, Inc. experienced the following events in Year 1, Its first year of operation: 1. Performed counseling services for $29,200 cash 2. On February 1. Year 1, paid $20,400 cash to rent office space for the coming year 3. Adjusted the accounts to reflect the amount of rent used during the year.