Marquis Smith started IT Consulting Services Incorporated on January 1, Year 1. The company experienced the following events during its first year of operation: 1. On June 1, Year 1, the company borrowed $23,800 cash from the bank. The note had a one-year term and 6% annual interest rate. 2. On December 31, Year 1, the company adjusted the accounting records to recognize accrued interest expense on the bank note. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Event Number Cash Notes Payable Interest Payable Common Stock Retained Revenue Expenses Net Income Statement of Cash Flows Earnings 1. 23,800 23,800+ + 2. . + Total 23,800 23,800+ 0+ 0+ 0 0 0 0 NC "NC Net change in cash