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

Common stock ($10 par value - 20,000 shares outstanding)......................$200,000

Additional paid-in capital..............................................................$100,000

Retained earnings.......................................................................$300,000

Total equity..............................................................................$600,000

Required:

1.) Glatfelter issues 5,000 shares of previously unissued stock to the public for $40 per share. None of this stock is purchased by Panton.

a.) Prepare Panton's journal entry to recognize the impact of this transaction.

b.) Describe how this transaction would affect Panton's books.

2.) Glatfelter issues 5,000 shares of previously unissued stock to the public for $27 per share. None of this stock is purchased by Panton.

a.) Prepare Panton's journal entry to recognize the impact of this transaction.

b.) Describe how this transaction would affect Panton's books.