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
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 29P
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