1. Performed counseling services for $29,200 cash.
2. On February 1, Year 1, paid $20,400 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?

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		$0
Liabilities
Stockholders Equity
Total stockholders equity		0
Total liabilities and stockholders equity		$0

• 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		$0

• 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