TB Problem 19-167 (Static) In order to encourage employee ownership... In order to encourage employee ownership of the company's $1 par common shares, KC Rakow Corporation 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 15% discount. During June, employees purchased 150,000 shares at a time when the market price of the shares on the New York Stock Exchange was $10 per share. Required: Prepare the appropriate journal entry to record the June 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. View transaction list Journal entry worksheet 1 Record the June purchases of shares under the employee share purchase plan. Note: Enter debits before credits. Transaction 1 Record entr Cash Cash General Journal Common stock Compensation expense Income tax payable Paid-in capital - excess of par Debit 1,275,000 225,000 Credit 150,000 1,350,000 View general journal >
TB Problem 19-167 (Static) In order to encourage employee ownership... In order to encourage employee ownership of the company's $1 par common shares, KC Rakow Corporation 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 15% discount. During June, employees purchased 150,000 shares at a time when the market price of the shares on the New York Stock Exchange was $10 per share. Required: Prepare the appropriate journal entry to record the June 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. View transaction list Journal entry worksheet 1 Record the June purchases of shares under the employee share purchase plan. Note: Enter debits before credits. Transaction 1 Record entr Cash Cash General Journal Common stock Compensation expense Income tax payable Paid-in capital - excess of par Debit 1,275,000 225,000 Credit 150,000 1,350,000 View general journal >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:TB Problem 19-167 (Static) In order to encourage employee ownership...
In order to encourage employee ownership of the company's $1 par common shares, KC Rakow Corporation 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 15% discount. During June, employees purchased 150,000 shares at a time when the market price of the shares
on the New York Stock Exchange was $10 per share.
Required:
Prepare the appropriate journal entry to record the June 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.
View transaction list
Journal entry worksheet
1
Record the June purchases of shares under the employee share purchase plan.
Note: Enter debits before credits.
Transaction
1
Record entr
Cash
Cash
General Journal
Common stock
Compensation expense
Income tax payable
Paid-in capital excess of par
Debit
1,275,000
225,000
Credit
150,000
1,350,000
View general journal
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