I need help with 1-3 and A-C.

Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation: 1. Earned $1,200 of cash revenue. 2. Borrowed $2700 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 o one-year term and an 7 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 Yeat 1 ? c. Use a horizontal statements model to show how eoch event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases () 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 octivities (AA), or financing activities (FA). The first transaction has been recorded as an example. Complete this question by entering your answers in the tabs below. What is the amount of interest expense and the cash paid for interest in Year 17 (Do not rocind intermediate calculations and round your final answer to nearest whole doltar amount.)