On May 1, Year 3, Love Corporation declared a $59,700 cash dividend to be paid on May 31 to shareholders of record on May 15. Required Record the events occurring on May 1 and May 31 in the following horizontal statements 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. Bill Darby started Darby Company on January 1, Year 1, The company experienced the following events during its first year of operation: 1. Earned $1,100 of cash revenue. 2. Borrowed $2,300 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 oneyear term and an 6 percent annual interest rate. Required: a. 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, decreases, or increases and decreases each element of the financlal statements. In the Statement of Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), or financing actlvitles (FA). The first transaction has been recorded as an example. Complete this question by entering your answers in the tabs below. a. What is the amount of interest expense in Year 1? b. What amount of cash was paid for interest in Year 1? Note: Do not round intermediate calculations. 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, decreases, of increases and decreases each element of the financial statements, In the Statement of Cash Flows column, designate the cash flows as operating activities (OA), investing octivities (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. Use a horizontal statements modei to show how esch event affects the balance sheet, income statement, and statement of cash flows, Indicate whether the event increas statements. In the Statement of Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first to Note: Leave cells blank if no input is needed. in Year 1 ? Ihow cach event affects the batance shoet, income statement, and statement of cash 1, decreases, or increasns and decreases each element of the financial statements, in the e the cosh fiows as operating activities (OA), investing octivities ( (A), of financing activities id as an example. answers in the tabs below. w each event affects the balance sheet, income statement, and statement of cash flows: Indicate whether the event increases, decreases, or increases and decreases fach