Life, Incorporated 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. Note: Enter any decreases to account balances with a minus sign. LIFE, INCORPORATED Effect of Events on the Accounting Equation Stockholders' Assets Equity Event Retained Cash Prepaid Rent Earnings 1. Performed services 2. Prepaid rent = 3. Used rent Totals 0 0 0 b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. Note: In statement of cash flows, cash outflows should be indicated with a minus sign. LIFE, INCORPORATED Income Statement For the Year Ended December 31, Year 1 $ 0