Problem 3-1 . . Blacklands, Inc. engages in the following common stock transactions in 2020 for its 51 par value common stock. The firm eamed $200 of net income during 2020, its first year of business. January 1Issued 200 shares to an investor for $8 per share. January 2Issued a ten-year, 4%, S1,000 bond at par value. December 1Purchased 40 of the shares sold to the investor for $10 per share, and placed them in the corporate treasury. December 10Issued 75 shares to another investor at $11 per share in order to secure additional financing for the firm. December 12Issued 30 of the treasury shares when the market price was 512 per share. December 15Declared a 5.20 per share dividend. December 31Paid the dividend declared on December 15. December 31Paid 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. Problem 3-2 Rancho Cucamonga, Inc. presents the following excerpts from its December 31, 2020 balance sheet: . . Long-Term Liabilities: Note payable, 8% $200,000 Bonds payable, 10% 1,000,000 Shareholders' Equity Common stock, par 50,000 350,000 Additional paid-in-capital common stock Total contributed capital 400,000 Retained earings 250.000 Total shareholders' equity 650,000 The accounting department also conveys the following information: Risk-free rate of return - 3% Risk premium - 4.05% Tax rate -30% Requirement: Compute Rancho Cucamonga's weighted average cost of capital