an Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation 1. Earned S1400 of cash revenue. 2. Borrowed $2.400 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 9 percent annual interest rate Required What is the amount of interest payable at December 31, Year 17 b. What is the amount of interest expense In Year 12 c. What is the amount of interest paid in Year 12 d. 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 (A) 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. Req AtoC Rego 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 increas the financial statements. In the Statement of Cash Flows column Classify the cash flows as operating activities (OA), Investing activities (A) or financing activities (PA) any of the elements should be left blank. The first transaction has been recorded as an example. (Note: Not all cells will require an input.) DARBY COWANY Horizontal Statement Model for Yeart Balance sheet Income Statement A Stockholders' Equity Haven Ewende Netboom Reg A to C RegD 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 increa 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). any of the elements should be left blank. The first transaction has been recorded as an example. (Note: Not ali cells will require an input DARBY COMPANY Harlrontal Statement Modul for Your 1 + Income Statement Event Assets Balance Sheet Liabilities Notes Interest Payabi Revenue Expense Net Income Stockholders' Equity Common Retained Stock Eaminos Statement of Cash Flowe No Cash 1 1 2 3 .
