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 i Average price per share As of June 30, 2020, 96 million shares of our common stock were reserved for future issuance through the ESPP No 1 2020 Date June 30, 2020 $142.22 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. 2019 11 $104.85 2018 13 $76,40 Cash Compensation expense Common stock Paid-in capital- excess of par Answer is complete but not entirely correct. General Journal Debit 142.220,000 23,703 333 Credit 56 165,923,277
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 i Average price per share As of June 30, 2020, 96 million shares of our common stock were reserved for future issuance through the ESPP No 1 2020 Date June 30, 2020 $142.22 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. 2019 11 $104.85 2018 13 $76,40 Cash Compensation expense Common stock Paid-in capital- excess of par Answer is complete but not entirely correct. General Journal Debit 142.220,000 23,703 333 Credit 56 165,923,277
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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%2Fbbe62c80-bc40-4894-985c-4fd8f118635b%2Fa9cf5b94-4c80-4da8-9cde-14f33ff866f6%2Fzbynmvn_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
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