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3ill Darby started Darby Company on January 1, Year 1. The company experlenced the following events during its first year of speration: 1. Earned $1,100

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3ill Darby started Darby Company on January 1, Year 1. The company experlenced the following events during its first year of speration: 1. Earned $1,100 of cash revenue. 2. Borrowed $2,200 cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, Year 1 , had a one-year term and an 5 percent annual interest rate. ?equired 1. What is the amount of interest payable ot December 31 , Year 1 ? 3. What is the amount of interest expense in Year 1 ? c. What is the amount of Interest paid in Year 1 ? 1. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases () or decreases (D) each element of the financial statements. In the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA) or financing activities (FA). Columns for events that have no effect on any of the elements should be left blank. The first transaction has been recorded as an example. Complete this question by entering your answers in the tabs below. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate wh the financial statements. In the 5 tatement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA) or fin. any of the elements should be left blank. The first transaction has been recorded as an example. Lompiete tnis question Dy entering your answers in the taos deiow. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash fiows. Indicate whether the event increas the financial statements. In the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA) or financing octivities (FA). C any of the elements should be left blank. The first transaction has been recorded as an example. Note: Not all celis will require an input. events that have no eftect on any of the elements should be left blank. I he tirst transaction has been recorced as an examp ( Answer is not complete. Complete this question by entering your answers in the tabs below. What is the amount of interest payable at December 31 , Year 1 ? Note: Do not round intermed ate calculations. Round your answer to the nearest dollar amount. What is the amount of interest expense in Year 1 ? Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. What is the amount of interest paid in Year 1

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