MacroApps 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 10% of their gross compensation during an offering period. Employees purchased the following shares during the periods presented: (Shares in millions) 2020 2019 2018 Year Ended June 30, Shares purchased 10.1 12.1 14.1 Average price per share $ 144.64 $187.27 $ 78.82 As of June 30, 2020, 96 million shares of our common stock were reserved for future issuance through the ESPP. Required: Prepare the journal entry that summarizes MacroApps'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. No 1 Date June 30, 2020 Answer is complete but not entirely correct. General Journal Debit 1,301,780,000 Compensation expense Cash Paid-in capital - excess of par Common stock 144.640,000 X Credit 1,438,300,000 X 10,100,000
MacroApps 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 10% of their gross compensation during an offering period. Employees purchased the following shares during the periods presented: (Shares in millions) 2020 2019 2018 Year Ended June 30, Shares purchased 10.1 12.1 14.1 Average price per share $ 144.64 $187.27 $ 78.82 As of June 30, 2020, 96 million shares of our common stock were reserved for future issuance through the ESPP. Required: Prepare the journal entry that summarizes MacroApps'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. No 1 Date June 30, 2020 Answer is complete but not entirely correct. General Journal Debit 1,301,780,000 Compensation expense Cash Paid-in capital - excess of par Common stock 144.640,000 X Credit 1,438,300,000 X 10,100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Please help me.
Thankyou.
Transcribed Image Text:MacroApps 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 10% of their gross compensation during an offering period. Employees purchased the
following shares during the periods presented:
(Shares in millions)
2020
Year Ended June 30,
Shares purchased
Average price per share.
10.1
$144.64
As of June 30, 2020, 96 million shares of our common stock were reserved for future issuance through the ESPP.
Required:
Prepare the journal entry that summarizes MacroApps'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 fleld. Enter your answers
In whole dollars.
No
1
Date
June 30, 2020
2019
2018
12.1
14.1
$197.27 $ 78.82
Answer is complete but not entirely correct.
General Journal
Debit
1,301,760,000 X
144,640,000 X
Compensation expense
Cash
Paid-in capital - excess of par
Common stock
Credit
1,436,300,000 x
10,100,000 X
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