Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation: 1. Earned $16.200 of cash revenue 2. Borrowed $12,000 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 8 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 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), 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 (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. Reg A and B Req What is the amount of Interest expense and the cash paid for interest in Year 17 (Do not round Intermediate calculations.) 5 320 a. Interest expense Amount of cash RegC) BW Darby started Darby compary on January Year. The company experienced the following events during rear of operation 1. Earned 516,200 of cash revenue 2. Borrowed $12.000 cash from the bank 3. Adjusted the accounting records to recognize accrued interest expense on the banknote The nosed on September Yeart da one year term and an 8 percent annual interest rate Required Was the amount of interest expense in Year 19 b. What amount of cash was paid for interest in Yeart? c. Use a honzontal statements model to show how each event affects the balance sheet income statement and statement of cash flows indicate whether the event increase or decreases there affect the cell bank in the Cash Flow Column, designate the cash flows as operating activities ( Osting actor financing activities FA The first transaction has been recorded as an example Complete this question by entering your answers in the tabs below A and scontattatement model to show how each event affects the balance sheet income statement, and statement of the flow indicate whether the event inca ( decorre is no afect leave the call bank in the cash column, designate the cash was operating activities ( Ovesting activities Arancing activities (J. The transactions to be models an example of all wil granty DAHY COMPANY Balance She Stoch 1 1