Therapy Inc experienced the following events in 2014 its first
Therapy Inc. experienced the following events in 2014, its first year of operation:
1. Performed counseling services for $ 18,000 cash.
2. On February 1, 2014, paid $ 12,000 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 under an accounting equation.
b. Prepare an income statement, balance sheet, and statement of cash flows for the 2014 accounting period.
c. Ignoring all other future events, what is the amount of rent expense that would be recognized in 2015?

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help