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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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