The Following Selected Financial Statement Information Is for Palmer and Associates

question 44

Essay

The following selected financial statement information is for Palmer and Associates.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { December } 31$ $\begin{array}{lrr}&2017&2016\\\text { Bonds payable } & \$ 500,000 & \$ 400,000 \\\text { Common stock } & 850,000 & 740,000 \\\text { Retained earnings } & 600,000 & 520,000\end{array}$

The following activities occurred during 2017:
Issued bonds for $100,000 cash.
Issued common stock for $110,000 cash.
Earned net income totaling $88,000.
Paid cash dividends totaling $8,000.
(1)Prepare the financing activities section of the statement of cash flows for Palmer and Associates for the year ended December 31,2017.
(2)Explain the change in each noncurrent liability and owners' equity account.