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 80% of the fair market value on the last trading day of each three-month period. Employees may purchase shares having a value not exceeding 20% 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 Average price per share 2020 10.4 2019 12.4 2018 14.4 $ 145.30 $ 107.93 $ 79.48 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. Answer is not complete. General Journal Debit Credit No Date 1 June 30, 2020 Cash Compensation expense Common stock Paid-in capital - excess of par
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 80% of the fair market value on the last trading day of each three-month period. Employees may purchase shares having a value not exceeding 20% 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 Average price per share 2020 10.4 2019 12.4 2018 14.4 $ 145.30 $ 107.93 $ 79.48 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. Answer is not complete. General Journal Debit Credit No Date 1 June 30, 2020 Cash Compensation expense Common stock Paid-in capital - excess of par
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 80% of the fair market value on the last trading day of each three-month period. Employees may
purchase shares having a value not exceeding 20% 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
Average price per share
2020
10.4
2019
12.4
2018
14.4
$ 145.30 $ 107.93 $ 79.48
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.
Answer is not complete.
General Journal
Debit
Credit
No
Date
1
June 30, 2020
Cash
Compensation expense
Common stock
Paid-in capital - excess of par
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