Life, Incorporated experienced the following events in Year 1, its first year of operation: 1. Performed counseling services for $23,600 cash. 2. On February 1, Year 1, paid $16,200 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 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 Event 1. Performed services 2. Prepaid rent 3. Used rent Totals Cash 27 Stockholders' Assets Equity Retained Prepaid Rent Earnings = 0 0