please answer full question

Exercise 7-2A (Algo) Effects of recognizing accrued interest on financial statements LO 7-1 Bil Darby stated Darby Compony on January 1 Year t. The company experienced the following events during its first year of operation: 1. Eorned $51,400 of cash revenue. 2. Borrowed $2.500 cash from the bunk. 3. Adjusted the accouning records to resognize accrued interest expense on the bank note. The note, issued on September 1 , Year 1 , had a oneyear term and an 7 percent annual interest rate. Recuired: a. What is the amount of interest expense in Year 1 ? b. What amount of cast was poid for interest in Year 1 ? c. Use o horizcotal statements model to show how each event affects the balance sheet, income statement, and statement of cash. fiows. Indicate whether the event increases, decreases, or increases and decreases each element of the financial statements. In the Statement of Cash Flows column, designate the cash fows as operating activities (CA). investing activities (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. 3. What is the ampunt of interest expense in Year 1 ? 6. What amount of cash was paid for interest in Year 1? Fiste: Do nor roond intermadiste calculations. Bequirea