Bill darby started darby company on january 1, 2018. the company experienced the following events during its first year of operation: 1.earned $16,200 of cash revenue.2.borrowed $12,000 cash from the bank.3.adjusted the accounting records to recognize accrued interest expense on the bank note. the note, issued on september 1, 2018, had a one-year term and an 8 percent annual interest rate. required: a. what is the amount of interest expense to record for 2018? b. what amount of cash was paid for interest in 2018? 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 (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), or financing activities (fa). the first transaction has been recorded as an example.

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inventory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a.prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price.b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1