Life, Incorporated experienced the following events in Year 1, its rst year of operation: 1. Performed counseling services for $26,000 cash. 2. On February 1, Year 1, paid $18,000 cash to rent ofce 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 B Inc Req B Bal Req B Stmt of Req C Req A Stmt Sheet Cash Flows 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 Stockholders' Assets Equity Event Retained Cash Prepaid Rent Earnings 1. Performed services = 2. Prepaid rent 3. Used rent Totals 0 0 0Complete this question by entering your answers in the tabs below. Prepare an income statement for the Year 1 accounting period. (Do not round intermediate calculations.) Req A Req B Inc Req B Bal Req B Stmt of Stmt Sheet Cash Flows Req 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 Total assets EA 0 Liabilities Stockholders' Equity Total stockholders' equity O Total liabilities and stockholders' equity 0Req A Req B Inc Req B Bal Req B Stmt of Stmt Sheet Cash Flows Req C 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 0 Cash flows from investing activities Cash flows from financing activities: Net change in cash 0 Ending cash balance $ 0Complete this question by entering your answers in the tabs below. Req A Req B Inc Req B Bal Req B Stmt of Stmt Sheet Cash Flows Req C Ignoring all other future events, what is the amount of rent expense that would be recognized in Year 2? (Do not round intermediate calculations.) Rent expense to be recognized in Year 2