Blacklands, Inc. engages in the following common stock transactions in 2020 for its $1 par value common stock. The firm earned $200 of net income during 2020, its first year of business.

• -January 1—Issued 200 shares to an investor for $8 per share.
• -January 2—Issued a ten-year, 4%, $1,000 bond at par value.
• -December 1—Purchased 40 of the shares sold to the investor for $10 per share, and placed them in the corporate treasury.
• -December 10—Issued 75 shares to another investor at $11 per share in order to secure additional financing for the firm.
• -December 12—Issued 30 of the treasury shares when the market price was $12 per share.
• -December 15—Declared a $.20 per share dividend.
• -December 31—Paid the dividend declared on December 15.
• -December 31—Paid interest on the outstanding bond.

Requirements: (Use T accounts as necessary to track account balances)

• -Journalize the above transactions.
• -Present the effects of the debt financing on Blackland’s 2020 income statement.
• -Explain why the equity transactions did not affect the firm's 2020 income statement.
• -Report liabilities and stockholders’ equity on the company’s December 31, 2020 balance sheet.