Life, Inc. experienced the following events in Year 1, its first year of operation: 1. Performed counseling services for $22,000 cash. 2. On February 1, Year 1, paid $15,000 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 in accounts under an accounting equation (Enter any decreases to account balances with a minus sign.) LIFE, INC Effect of Events on the Accounting Equation Assets Stockholders Event Equity Cash Prepaid Rent Retained Earnings 1. Performed services 2. Prepaid rent 3. Used rent Totals 0 = 0 b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. (In statement of cash flows, cash outflows should be indicated with a minus sign.) LIFE, INC. Income Statement For the Year Ended December 31, Year 1 $ 0 LIFE, INC. Balance Sheet As of December 31, Year 1 Assets $ Total assets Liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ $ 0 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 Ending cash balance $ 0 c. Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2? Rent expense to be recognized in Year 2