Bu Darby and Darty Company on January 1 Year 1 The company experienced the following events during its first year of operation 1. Earned $100 of cash revenue 2. Borrowed $2.500 cash from the bank 1. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September Year had a one year term and an 4 percent annual interest rate Required What is the amount of interest payable at December 31. Year 12 b. What is the amount of interest expense in Year 12 What is the amount of interest paid in Year 1 d. Use a horsrontal statements model to show how each event affects the balance sheet income statement, and statement of cash Hows. Indicate whether the event increases or decreases (D) each element of the financial statements. In the Statement of Cash Flows column Classify the cash flows as operating activities (OA). Investing activities Alor financing activities (FA) Columns for events that have no effect on any of the elements should be left blank. The first transaction has been recorded as an example Complete this question by entering your answers in the tabs below. Una horiental 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) mach element of the financial statements. In the Statement of Cash Flows column, classify the cash flows as operating activities (OA, vesting activities (IA) or financing activities (TA), Columns for events that have no effect on any of the elements should be left blank. The first transaction has been recorded as an example thote: Not all cells will require ani) DARINY COMPANY Horretam Medal for Year 1 income Batam Reven Bantah Stockholdere Common Stock Payabi 1 ! 1 1 2 3 1 FA