Life, Inc., experienced the following events in $2016,$ its first year of operation:

$1.$ Performed counseling services for $$36000$ cash.

$2.$ On February $1,2016,$ paid $$18000$ cash to rent office space for the coming year.

$3.$ Adjusted the accounts to reflect the amount of rent used during the year.

Based on this information, $($a$)$ record the events under an accounting equation and $($b$)$ prepare an income statement, a balance sheet, and a statement of cash flows for the $2016$ accounting period.