Panton, Inc. acquired 18,000 shares of Glotfelty Corp. several years ago. At the present time, Glotfelty is reporting the following stockholders' equity:

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:

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:

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.