Check my world Bill Darby started Darby Company on January 1 Year 1. 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 Yeart had a one-year term and an 8 percent annual interest rate Required o What is the amount of interest expense in Year 1? b. What amount of cash was paid for interest in Year 1? 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 (I) or decreases (D) or if there is no effect. leave the cell blank. 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. Reg A and B Rego Check 1 flows. Indicate whether the event increases (l) or decreases (D). or if there is no effect, leave the cell blank in the Cash Flows column, designate the cash flows as operating activities (OA), investing activities (1A), or financing activities (FA). The first transaction has been recorded as an example, Complete this question by entering your answers in the tabs below. Sook Reg A and B Reg What is the amount of interest expense and the cash paid for interest in Year 17 (Do not round intermediate calculations.) a Interest expense b. Amount of cash Reqc > Reg A and B Regc Use a horizontal statements model to show how each event affects the balance sheet, Income statement, and statement of cash flows. Indicate whether the decreases (D), or if there is no effect, leave the cell blank. In the Cash Flows column, designate the cash flows as operating activities (OA). Investing activiti activities (FA). The first transaction has been recorded as an example. (Not all calls will require entry) DARBY COMPANY Horizontal Statement Model for Your Balance Sheet Income Statement Libilities Stockholders' Equity Notes Interest Common Retained Revenue Expenses Payable Payable Stock Earnings Cvent No. Nod Income Statement of Cash Flows 1 1 2 . 3 .