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Answer the following questions and fill out the table: Bill Darby started Darby Company on January 1 , Year 1 . The company experienced the
Answer the following questions and fill out the table:
Bill Darby started Darby Company on January Year The company experienced the following events during its first year of operation:
Earned $ of cash revenue.
Borrowed $ cash from the bank.
Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September Year had a oneyear term and an percent annual interest rate.
Required:
What is the amount of interest payable at December Year
What is the amount of interest expense in Year
What is the amount of interest paid in Year
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 I 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.
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 I 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. Note: Not all cells will require an input.
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