Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation 1. Earned $1,200 of cash revenue. 2. Borrowed $2,500 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 4 percent annual interest rate Required a. What is the amount of interest payable at December 31, Year 1? b. What is the amount of interest expense in Year 1? c. What is the amount of interest paid in Year 1? 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 (l) 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 Complete this question by entering your answers in the tabs below. Reg AtoC Reg D What is the amount of interest payable at December 21, Year 17 (Do not round Intermediate calculations, Round your answer to the nearest dollar amount.) What is the amount of interest expense In Year 17 (Do not round Intermediate calculations. Round your answer to the nearest dollar amount) What is the amount of interest paid in Year 1? Show less 16 Interest payable Intense Ancont of cash paid C Rego Umes should be left blank. The first transaction has been recorded as an example Complete this question by entering your answers in the tabs below Reg toc use a hortcontal statements model to show how each event affects the balance sheet, consettement, and stochows. Indicate whether the very schelet the financial state in the State of Cash Flowcom, ify the cash flows as ng activities (OA Wwting divide) or (PA) Cena y of the cements should be the first transaction has been recorded as an emeleri DARBY COMMY news LE 10 Cash Stock 1 04