Exercise $3-4$A $($Algo$)$ Prepaid items on financial statements LO $3-2$

Life, Incorporated experienced the following events in Year $1,$ its first year of operation:

Performed counseling services for $$22,000$ cash.

On February $1,$ Year $1,$ paid $$15,000$ cash to rent office space for the coming year.

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.

$\backslash$table$[[$LIFE$,$ INCORPORATED,$],[$Effect of Events on the Accounting Equation,$],[$Event$,$Assets,$=,\backslash$table$[[$Stockholders$\text{'}],[$Equity$]]],[,$Cash,Prepaid Rent,$=,\backslash$table$[[$Retained$],[$Earnings$]]],[1.$ Performed services,,,$=,],[2.$ Prepaid rent,,,$=,],[3.$ Used rent,,,$=,],[$Totals$,,,=,]]$