The Following Selected Financial Statement Information Is for Palmer and Associates

question 22

Essay

The following selected financial statement information is for Palmer and Associates.

The following activities occurred during 2013:
$\bullet$ Issued bonds for $100,000 cash.
$\bullet$ Issued common stock for $110,000 cash.
$\bullet$ Earned net income totaling $88,000.
$\bullet$ Paid cash dividends totaling $8,000.
(1)Prepare the financing activities

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Definitions:

Fourfold Test

A test for employment based upon ownership of tools, control, chance of profit, and risk of loss.

Risk of Profit

The possibility of encountering losses or gains in financial investments due to market fluctuations.

Control

The power or authority to manage, direct, or govern individuals, organizations, or systems.

Indefinite Hiring

An employment arrangement without a predetermined end date, typically at will and subject to termination by either party with notice.