Panton, Inc. acquired 18,000 shares of Glotfelty Corp. several years ago. At the present time, Glotfelty is reporting the following stockholders' equity: $$\begin{array} { | l | r | }
\hline \text { Common stock, } \$ 10 \text { par value } ( 20,000 \text { shares outstanding) } & \$ 200,000 \
\hline \text { Additional paid in capital } & 100,000 \
\hline \text { Retained earnings } & 300,000 \
\hline & \$ 600,000 \
\hline & \
\hline
\end{array}$$ Glotfelty issues 5,000 shares of previously unissued stock to Panton for $35 per share.
Required: Describe how this transaction would affect Panton's books.

Question

Panton, Inc. acquired 18,000 shares of Glotfelty Corp. several years ago. At the present time, Glotfelty is reporting the following stockholders' equity: $$\begin{array} { | l | r | } 
\hline \text { Common stock, } \$ 10 \text { par value } ( 20,000 \text { shares outstanding) } & \$ 200,000 \
\hline \text { Additional paid in capital } & 100,000 \
\hline \text { Retained earnings } & 300,000 \
\hline & \$ 600,000 \
\hline & \
\hline
\end{array}$$ Glotfelty issues 5,000 shares of previously unissued stock to Panton for $35 per share.
Required: Describe how this transaction would affect Panton's books.

Quizplus · Accepted Answer

The Answer of Panton, Inc. acquired 18,000 shares of Glotfelty Corp. several years ago. At the present time, Glotfelty is reporting the following stockholders' equity: $$\begin{array} { | l | r | } 
\hline \text { Common stock, } \$ 10 \text { par value } ( 20,000 \text { shares outstanding) } & \$ 200,000 \
\hline \text { Additional paid in capital } & 100,000 \
\hline \text { Retained earnings } & 300,000 \
\hline & \$ 600,000 \
\hline & \
\hline
\end{array}$$ Glotfelty issues 5,000 shares of previously unissued stock to Panton for $35 per share.
Required: Describe how this transaction would affect Panton's books.

Panton, Inc Glotfelty Issues 5,000 Shares of Previously Unissued Stock to Panton