Bill Darby started Darby Company on January 4 , Year 1 The company experienced the following events during its first year of operation: 1. Earned $1,700 of cash revenue 2. Borrowed $2,700 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 payable at December 31 , Year 1 ? b. What is the amount of interest expense in Year 1 ? c. What is the amount of interest pad in Year 1 ? d. Use a horzontal statements model to show how each event affects the balance sheet income statement, and statement of cash flows. The frst transaction has been recorded as an example. Complete this question by entering your answers in the tabs below