INTERMEDIATE ACCOUNTING
10th Edition
ISBN: 9781264046249
Author: SPICELAND
Publisher: MCG
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Chapter 19, Problem 19.10E
To determine
Employee share purchase plan: This is the plan offered by the company, which permits employees to buy the shares directly from the company, at discounted price. This plan is intended to encourage employee ownership in the shares of the company, and develop loyalty among the employee-shareholders.
Debit and credit rules:
- Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in
stockholders’ equity accounts. - Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.
To journalize: The entry for purchase of shares under employee share purchase plan, in the books of W Distribution
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Required:
Prepare the appropriate journal entry to record the June purchases of shares under the employee share purchase plan.
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Journal entry worksheet
1
Record the June purchases of shares under the employee share purchase plan.
Note: Enter debits before credits.
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Exercise 19-11 (Static) Employee share purchase plan; Microsoft [LO19-3]
Microsoft 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
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(Shares in millions)
Year Ended June 30,
Shares purchased
2018
13
$76.40
Average price per share.
$142.22
As of June 30, 2020, 96 million shares of our common stock were reserved for future issuance through the ESPP.
No
Required:
Prepare the journal entry that summarizes Microsoft's employee share purchases for the year ending June 30, 2020.
Note: If no…
Exercise 19-11 (Static) Employee share purchase plan; Microsoft [LO19-3]
Microsoft 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 15% 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
9
2019
11
$142.22
2018
13
$104.85 $76.40
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 Microsoft's employee share purchases for the year ending June 30,…
Chapter 19 Solutions
INTERMEDIATE ACCOUNTING
Ch. 19 - Prob. 19.1QCh. 19 - Prob. 19.2QCh. 19 - The Tax Code differentiates between qualified...Ch. 19 - Stock option (and other share-based) plans often...Ch. 19 - What is a simple capital structure? How is EPS...Ch. 19 - Prob. 19.6QCh. 19 - Blake Distributors had 100,000 common shares...Ch. 19 - Why are preferred dividends deducted from net...Ch. 19 - Prob. 19.9QCh. 19 - The treasury stock method is used to incorporate...
Ch. 19 - The potentially dilutive effect of convertible...Ch. 19 - How is the potentially dilutive effect of...Ch. 19 - Prob. 19.13QCh. 19 - If stock options and restricted stock are...Ch. 19 - Wiseman Electronics has an agreement with certain...Ch. 19 - Prob. 19.16QCh. 19 - When the income statement includes discontinued...Ch. 19 - Prob. 19.18QCh. 19 - Prob. 19.19QCh. 19 - (Based on Appendix B) LTV Corporation grants SARs...Ch. 19 - Prob. 19.1BECh. 19 - Prob. 19.2BECh. 19 - Prob. 19.14BECh. 19 - Prob. 19.15BECh. 19 - Prob. 19.10ECh. 19 - EPS; concepts; terminology LO195 through LO1913...Ch. 19 - FASB codification research LO192 The FASB...Ch. 19 - Prob. 19.28ECh. 19 - Communication Case 1911 Dilution LO199 I thought...Ch. 19 - Prob. 19.12DMP
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