Ben Bradley started Bradley Company on January 1, Year 1. The company experienced the following events during its first year of operation: 1. Earned $3.000 of cash revenue for performing services. 2. Borrowed $4,500 cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on August 1, Year 1, had a one-year term and a 8 percent annual interest rate. Required: a. What is the amount of interest expense in Year 1? Interest expense b. What amount of cash was paid for interest in Year 1? Interest payment c. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of < Prev 15 of 16 Next > 19 B