In order to encourage employee ownership of the company's $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 14% discount. During March, employees purchased 95,000 shares at a time when the market price of the shares on the New York Stock Exchange was $40 per share. Required: Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Event 1 Compensation expense Answer is not complete. General Journal Cash Paid-in capital - excess of par Common stock Debit Credit 95,000
In order to encourage employee ownership of the company's $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 14% discount. During March, employees purchased 95,000 shares at a time when the market price of the shares on the New York Stock Exchange was $40 per share. Required: Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Event 1 Compensation expense Answer is not complete. General Journal Cash Paid-in capital - excess of par Common stock Debit Credit 95,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hansaben
Transcribed Image Text:In order to encourage employee ownership of the company's $1 par common shares, Washington Distribution permits any of its
employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be
purchased at a 14% discount. During March, employees purchased 95,000 shares at a time when the market price of the shares on the
New York Stock Exchange was $40 per share.
Required:
Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No
1
Event
1
Compensation expense
Answer is not complete.
General Journal
Cash
Paid-in capital - excess of par
Common stock
Debit
Credit
95,000
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.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