Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation: 1. Earned $1,700 of cash revenue. 2. Borrowed $2,300 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 5 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 (1) 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. Req A to C Req D What is the amount of interest payable at December 31, Year 17 Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. What is the amount of interest expense in Year 171 Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. What is the amount of interest paid in Year 17 < Prev 4 of 5 Next > 20 4 points eBook 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 (1) 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. Hent Print Req A to C Req D References What is the amount of interest payable at December 31, Year 17 Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. What is the amount of interest expense in Year 17 Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. What is the amount of interest paid in Year 17 a. Interest payable b Interest expense c. Amount of cash paid < Reg A to C Req D > ' Prey 4 of 5 Next > Show less A 4 20 pom www Complete this question by entering your answers in the tabs below. RAC Req D Check my work 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 the financial statements. In the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA) or financing activities (YA). Colu any of the elements should be left blank. The first transaction has been recorded as an example Note: Not all ces will require an input DARBY COMPANY Horizontal Statements Model for Year 1 Balance Sheet come Statement Event Number Assets Stockholders' Equity Expense Net income Statement of Cash Cash Notes Payable Payable Commen Shock Earnings CA T 2 3