Life, Incorporated experienced the following events in Year 1, its first year of operation: 1. Performed counseling services for $27,600 cash. 2. On February 1, Year 1, paid $19,200 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 in general ledger accounts 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? Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Bal Req B Stmt of Req C Sheet Cash Flows Help Save & Exit Check mw Book Hint rences Complete this question by entering your answers in the tabs below. Req B Inc Req B Bal Req A Stmt Sheet Req B Stmt of Cash Flows Req C Record the events in general ledger accounts 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 Event 1. Performed services 2. Prepaid rent 3. Used rent Totals Stockholders' Assets Equity Retained Cash Prepaid Rent Earnings 27,600 (19,200) 19,200= (17,600) 8,400 1,600 A Req B Inc Stmt > Check my work c. Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2? Complete this question by entering your answers in the tabs below. Check my work Req Bhc Req A Stmt Req B Bal Sheet Req B Stmt of Cash Flows Req C 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 Revenue Expense Net income $ 27,600 17,600 $ 10,000 < Req A Req B Bal Sheet > 3 points eBook H References seal would be recognized in Year 2? Complete this question by entering your answers in the tabs below. Req 8 Inc Req A Stmt Req B Bal Sheet Req 8 Stmt of Cash Flows Reg C 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 Cash Prepaid rent Total assets Liabilities Stockholders' Equity Total stockholders' equity Total Sabilities and stockholders' equity $ 84,000 16,000 Req B Inc Req B Bal Req A Stmt Sheet Req B Stmt of Cash Flows Req C Booki Hint "erences Prepare a statement of cash flows for the Year 1 accounting period. (Amounts to be deducted should be indicated with a minus sign.) LIFE, INC. Statement of Cash Flows For the Year Ended December 31, Year 1 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 the events in general ledger accounts 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? Complete this question by entering your answers in the tabs below. Req B Inc Req B Bal Req A Stmt Sheet Req B Stmt of Cash Flows Req C Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 27 (Do not round Intermediate calculations.) Rent expense to be recognized in Year 2