Bill Darby started Darby Company on January 1,2018. 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, 2018, had a one-year term and an 8 percent annual interest rate. Required a. What is the amount of interest expense to record for 2018? b. What amount of cash was paid for interest in 2018? 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 (), decreases (D), or does not affect (NA) each element of the financial statements. 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 Req A and B Req C What is the amount of interest expense and the cash paid for interest in 2018? (Do not round intermediate calculations.) a. Interest expense b. Amount of cash Check my work c Use a horizontal statements model to show how each event offects the balance sheet,income statement, and statement flows. Indicate whether the event increases (D. decreases (D) or does not affect (NA) each element of the financial statements.In Cash Flows columrn transaction has been recorded as an example. , designate the cash flows as operating activities OA), investing acth ties o financing activities FA). The first Complete this question by entering your answers in the tabs below. Req A and B | Req 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 increase activities (IA), or financing activities (FA). The first transaction has been recorded as an example. Horizontal Stetements Model fer 2018 Balance Sheet Income Statement vent Assets Liabilities Stockholders Equilit Statement of Interest Common Retained Rxpenses ueExpenses Insome Cash Cash Notes -NA NA Req A and B