Bui Darby started Darby Company on January 1. Year 1. The company experienced the following events during its first year of operation: 1. Eamed $1,600 of cash revenue. 2. Borrowed $2,600cash from the bank. 3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on Septernber 1 , Year 1 , had a one-year term and an 4 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 paid in Year 1 ? d. 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 (0) 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 (A) or 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. What is the amount of interest payable at December 31, Year 17 Note: Do not round Intermediate calculations. llound your answer to the nearest dellar aimount. What is the amount of interest expense in Year 17 Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. What is the omount of interest paid in Year 17 . Use a horizontal statements model to show how each event affects the baiance sheet, income statement, and statement of cash fiows. Indicate whether the event increases (0) or decreases (D) each element of the financlal statements. In the Statement of Cash Flows column, classity the cash flows as operating activities (OA), investing octivities (A) or 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. Use a horitontal statements model to show how each event affects the balance shect, income starement, and statement of cash nows. Indicate whother the event increa; the finahcial statements. In the 5 tatement of Cash flows column, classify the cash flows as operating activities (OA), investing activities (IA) of firiancing activities (FA). any of the elements should be left blank. The frit tonsaction his been recorsed as an example. Note: Not all celly wit require an input