Bill Darby started Darby Cormpany on January 1, Year 1. The compary experienced the following events during its first year of operation: 1. Farned $1,200 of cash revenue 2. Borrowed $2,300 cash from the bank 3Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, Year 1. had a one-year tenm 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 pald in Year 1? d. se a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of caslh flows. Indicate whether the event Increases (), decreases (D), or does not affect (NA) each element of the financlal statements. In the Statement of Cash Flows column, designate the cash flows as operating activities (OA). investing activities (lA), financing activities (FA). or not affected (NA) The first transaction has been recorded as an example COMP Statements Model for Year 1 Balance Sheet Income Statement Event Assets Liabilities Stockholders' Equity Revenue Expense Net Income Cash Flows a Intcrest payable b Intcrest expense C. Amount of cash paid Interest Common Retained No Cash Payable Payable Stock Earnings OA 2. 3. 552, 257px 1912 825px 100% (-) 3:-16 PM O Type here to search 419/2019 20