Bill Darby started Darby Company on January 1. Year 1. The company experienced the following events during its first year of operation: 1. Earned $1,300 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 1, Year 1, had a one-yearterm and an 8 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 Year1? c. What is the amount of interest paid in Year 1? (I. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash ows. Indicate whether the event increases (I) or decreases {D} each element of the nancial statements. In the Statement of lCash Flows column, classify the cash flows as operating activities {DA}, investing activities {IA} or nancing activities {FA}. Columns for events that have no effect on any of the elements should be left blank. The rst transaction has been recorded as an example. Complete thls question by entering your answers In the tabs below. What Is the amount of Interest payable at December 31, Year 1? (Do not round Intermediate calculations. Round your answer to the nearest dollar amount.} What Is the amount of Interest expense In Year 1? (Do not round Intermediate calculations. Round your answer to the nearest dollar amount.) ... . .u. .. s... Complete this qumon by enterlng your owners In the tehe below. What is the amount of interest payable at December 2-31r Year 1? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)- What is the amount of interest expense in Year 1? (Do not round Intermediate calculations. Round your answer to the nearest dollar amount.) What is the amount of interest paid In Year 1? Interest enqaense Amount of cash paid Req A to C Req D Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate w the financial statements. In the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA) or fil any of the elements should be left blank. The first transaction has been recorded as an example. (Note: Not all cells will require an input.) DARBY COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement Event Assets Liabilities Stockholders' Equity Revenue - Expense Net Income State No Cash Notes Interest Common + + + Retained = Payable Payable Stock Earnings 1 . + + + 2. + 3. + +