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

Essay

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

$$\begin{array} { | l | r | } \hline \text { Common stock, } \$ 10 \text { par value } ( 20,000 \text { shares outstanding) } & \$ 200,000 \\\hline \text { Additional paid in capital } & 100,000 \\\hline \text { Retained earnings } & \underline { 300,000 } \\\hline & \underline {\underline{ \$ 600,000 } }\\\hline & \\\hline\end{array}$$
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.