Chapter 9: Homework 4 points Mc eBook Print References 1 Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation: Saved Complete this question by entering your answers in the tabs below. Req A to c Help Req D Save & Exit 1. Earned $1,000 of cash revenue. 2. Borrowed $2,600 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 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. The first transaction has been recorded as an example. Submit Check my work www a. What is the amount of interest payable at December 31, Year 1? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) b. What is the amount of interest expense in Year 1? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

Bil Darby started Darby Company on January 1, Yoor 1. The company experienced the following events during its first year of operation: 1. Eathed $1,000 of cash revenue. 2. Borrowed $2,600 cash from the benk. 3. Adjusted the sccounting records to recognize accrued interest expense on the bank rote. The note, issued on September 1. Year 1 , had o oneyear term and an 4 percent annuaf interestrate. Required: a. What is the amount of interent payable at December 21, Yeur 1? b. What is the amount of interest expense in Veat 1? c. What is the amount of interest paid in Year 1 ? d. Use a harizontal statements model to show how each event affects the balance sheet, income statement, and statement of cosin flows. The first transaction has been recorded as an examplo. Complete this question by entering your answers in the tabs below. a. What is the ampunt of interest payoble at December 31 , Year 17 ; Do not round intermediate calculations. Round vour answer to the nearest dollsr amount.) D. What is the amount of interest expense in Year 17 ( 00 not round intemediate calculations. Mound your answer to the. nesrest dolis amount)