Life, Inc., experienced the following events in 2018, its first year of operation: 1. Performed counseling services for $19,600 cash. 2. On February 1, 2018, paid $13,200 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 Reg 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 Equity Retained Event Rent Earnings 1. Performed counseling services 2. Prepaid rent 3. Used rent Totals Cash Prepaid Complete this question by entering your answers in the tabs below. Reg A Req B1 Inc Stmt Req B2 Ball Req B3 CF Sheet Stmt Reqc Prepare an income statement for the 2018 accounting period. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) LIFE, INC. Income Statement For the Year Ended December 31, 2018 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 Reqc Prepare a balance sheet for the 2018 accounting period. (Do not round intermediate calculations.) LIFE, INC. Balance Sheet As of December 31, 2018 Assets Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Complete this question by entering your answers in the tabs below. Req A Req Bi Inc Stmt Req B2 Bal Sheet Req B3 CF Stmt Reg C Prepare the statement of cash flows for the 2018 accounting period. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign.) LIFE, INC Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance Complete this question by entering your answers in the tabs below. Reg A Req B1 Inc Stmt Req B2 Bal Sheet Req B3 CF Stmt Reqc Ignoring all other future events, what is the amount of rent expense that would be recognized in 2019? (Do not round intermediate calculations.) Rent expense to be recognized in 2019
