Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
33
![Exercise 19-11 (Static) Employee share purchase plan; Microsoft [LO19-3]
Microsoft Corporation's disclosure notes for the year ending June 30, 2020, included the following regarding its $0.00000625 par
common stock:
Employee Stock Purchase Plan-We have an ESPP for all eligible employees. Shares of our common stock may be purchased by
employees at three-month intervals at 90% of the fair market value on the last trading day of each three-month period. Employees may
purchase shares having a value not exceeding 15% of their gross compensation during an offering period. Employees purchased the
following shares during the periods presented:
(Shares in millions)
Year Ended June 30,
Shares purchased
2018
13
$76.40
Average price per share.
$142.22
As of June 30, 2020, 96 million shares of our common stock were reserved for future issuance through the ESPP.
No
Required:
Prepare the journal entry that summarizes Microsoft's employee share purchases for the year ending June 30, 2020.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in whole dollars.
1
2020
Date
June 30, 2020
2019
11
$104.85
Answer is complete but not entirely correct.
General Journal
Cash
Compensation expense
Common stock
Paid-in capital- excess of par
●●
Debit
142.220,000
23,703 333
Credit
56
165,923,277](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c8d4003-6dbe-4a96-8cef-3ca09402ad71%2F00d55f16-fcf8-4a1e-b709-c8a0d638a65b%2F5jkdxb9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 19-11 (Static) Employee share purchase plan; Microsoft [LO19-3]
Microsoft Corporation's disclosure notes for the year ending June 30, 2020, included the following regarding its $0.00000625 par
common stock:
Employee Stock Purchase Plan-We have an ESPP for all eligible employees. Shares of our common stock may be purchased by
employees at three-month intervals at 90% of the fair market value on the last trading day of each three-month period. Employees may
purchase shares having a value not exceeding 15% of their gross compensation during an offering period. Employees purchased the
following shares during the periods presented:
(Shares in millions)
Year Ended June 30,
Shares purchased
2018
13
$76.40
Average price per share.
$142.22
As of June 30, 2020, 96 million shares of our common stock were reserved for future issuance through the ESPP.
No
Required:
Prepare the journal entry that summarizes Microsoft's employee share purchases for the year ending June 30, 2020.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in whole dollars.
1
2020
Date
June 30, 2020
2019
11
$104.85
Answer is complete but not entirely correct.
General Journal
Cash
Compensation expense
Common stock
Paid-in capital- excess of par
●●
Debit
142.220,000
23,703 333
Credit
56
165,923,277
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education