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Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation: 1. Earned $2.000 of cash revenue, 2 Borrowed $2,000 cash from the bank. 3. Adjusted the accounting records to recognize accrued Interest expense on the bank note. The note, Issued on September 1 Year 1, had a one-year term and an 9 percent annual Interest rate. 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). decreases (D), or does not affect (NA) each element of the financial statements. In the Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or not affected (NA). The first transaction has been recorded as an example, Show less DARBY COMPANY Statements Model for Year 1 Balance Sheet Income Statement Event Assets = Liabilities Stockholders' Equity Revenue - Expense - Net Income Statement of Cash Flow No Cash Notes Payable Interest | Payable Common Stock * Retained Earnings NA + NA + NA +L - NA = L OA FA NA INA