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Life, Inc., experienced the following events in Year 1, its first year of operation 1. Performed counseling services for $30,000 cash. 2. On February 1,

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Life, Inc., experienced the following events in Year 1, its first year of operation 1. Performed counseling services for $30,000 cash. 2. On February 1, Year 1. paid $21,000 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? 5 Complete this question by entering your answers in the tabs below. Req B1 Inc Reg A Req B2 Bal Reg B3 CF Stmt Sheet Reqc 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 Equity Prepaid Retained Event Cash Rent Earnings 1 Performed counseling services 2. Prepaid rent 3 Used rent Totals 0 Req B1 lnc Samt Req B1 Inc Stm 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 Prepare an income statement for the Year 1 accounting period. (Do not round intermediate calculations.) LIFE, INC. Income Statement For the Year Ended December 31, Year 1 0 Prepare a balance sheet for the Year 1 accounting period. (Do not round intermediate calculations.).. LIFE, INC. Balance Sheet As of December 31, Year 1 Assets S 0 Total assets Liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ $ 0 Prepare the statement of cash flows for the Year 1 accounting period. (Do not round intermediate calculations. Enter cash outflows with a minus sign.) LIFE, INC. Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 $ 0 Ending cash balance Reqc >

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