Life, Incorporated, experienced the following events in Year $1,$ its first year of operation:

Performed counseling services for $$23,600$ cash.

On February $1,$ Year $1,$ paid $$16,200$ cash to rent office space for the coming year.

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

Required:

Based on this information alone:

Record the events under an accounting equation.

Prepare an income statement, balance sheet, and statement of cash flows for the Year $1$ accounting period.

Ignoring all other future events, what is the amount of rent expense that would be recognized in Year $2?$