Problem 1 (10pts) On January 1, 2017, Arbor Corp issued $800,000 of 20-year, 1 1 % bonds at market yold of12% p a Interest is payable semiannually on June 30 and December 31. Compute the issue price of the bonds. Show the financial statements effects using the template for the following: 1) bond issuance, 2) semiannual interest payment and discount amortization on June 30, 2017, and 3) semiannual intcrest payment and discount amortization on December 31, 2017 Problem 2 (10pts) The following table shows the stockholders' equity account for Verataco Company at December 31, 2016 Common stock, $5 par, 500,000 shares authonized; 350,000 shares issued and outstanding aid-in capital in excess of par valuc Retained earnings 1,750,000 800,000 634,000 During 2017, the following transactions occurred: January 5 ssued 10,000 shares of common stock for $13 cash per share January 18 Repurchased 4,000 shares of common stock at $16 cash per share March 22 Sold 1,000 of the treasury shares acquired January 18 for $19 cash per share July 17 October 1 Issued 5JXO shares (out of 50,000 authorized) of 8%, $25 par value preferred stock for $36 Sold 500 shares of treasury stock for $14 per share cash per share Use the financial statement effects template to show the effects of each transaction. Prepare the December 31, 2017, stockholders' equity section of the balance sheet assuming the company reports net income of $76,900 for the year and pays no dividends. For cach type of stock (common vs preferred) you nood to have sepurate entries for par value and adirional pad in capital