Bili Darby started Darby Company on January :. Year 1. The company experienced the following events during its first year of operntion: 1. Earned 51100 of cash revenue. 2. Borrowed $2,400 cash from the bank. 3. Adjusted the occounting records to recognize ocerued interest expense on the bank note. The note. issued on September 1 , Year 14 had a one-year term and an 7 percent annual interest rate. Required a. What is the amount of interest expense in Year 1? b. What amount of cash was pald for interest in Year 1 ? c. Use a horizontal statements model to show how each event affects the bolance sheot, income statement, and statement of cash flows. Indicate whether the event increases (0) of decreases (D), or if there is no effect, leave the cell blank. in the Cash Flows column, designate the cash flows as operating activities (OA) investing activities (A) or financing activities (FA). The first transaction. has been recorded as an example. Complete this question by entering your answers in the tabs below. Use a horzontat statements model to show how each event affects the balsnce sheet, inceme statement, and statement of cash flows. Indicatn whether the event increases (1) or decreases (O), or if there is no eflect, feave the cell biank, In the Cash Fiows column, designate the casti fiows as operating activities (OA). investing activities (IA), or financing actlitbes (FA), The first transaction has been recorded as an example. (Not all cells will require entry)