Biil Dabby started Darby Company on January 1. Year 1. The company experienced the following events during its firs year of operation: 1. Earned $1,800 of cash revenue. 2. Borrowed $2,800 cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note. Issued on September t. Year 1 had a one-year term and an 5 percent annual interest rate. Required a. What is the amount of interest expense in Year 1? b. What amount of cash was paid for interest in Year 1 ? c. Use a' harizontal 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), or if there is no effect, leave the cell blank. In the Cash Flowrs column, designate the cash flows as operating activities (OA), investing activites (IA), or financing activities (FA), The first transaction has been recorded as an example. Complete this question by entering your answers in the tabs below. What is the amount of Interest expense and the cash paid for interest in Year 1 ? (Do not round intermiediate calculations and round your final answer to nearest whole dollar amount.) Complete this question by entering your answers in the tabs below. decreases (B), on the firnt transaction has been recorded as an examble. (Nit ou ceth will 1equile entivy)