Purchases of shares under the employee share purchase plan

Assignment Help Financial Accounting

Reference no: EM131262351

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 15% discount. During March, employees purchased 100,000 shares at a time when the market price of the shares on the New York Stock Exchange was $42 per share.

Required:

Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the purchases of shares under the employee share purchase plan.

Reference no: EM131262351

Questions Cloud

Which investment is an effective hedge : A company with a short term commercial paper liability at an interest rate of 3% must refinance this liability in 90 days, and wants to hedge against the possibility that interest rates will be higher at that time. If the interest rate on U.S. Treasu..

Minimum expected annual revenue of the project : A mining project has an initial cost of $875,000 with operating costs of $400,000 per year decreasing $10,000 each year. What should be the minimum expected annual revenue of the project if the entire operation is evaluated at a Future Worth of $2 25..

Reports the contribution margin income statement : Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015. What amount of sales (in dollars) is needed to produce this target income?

Purchases of shares under the employee share purchase plan : 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. Prepare the appropriate journal entry to record th..

Maximum amount you would be willing to pay today for annuity : You are offered an annuity that will pay you $9,000 at the end of each of the next 10 years. What is the maximum amount you would be willing to pay today for this annuity?

The expenditure was for routine maintenance : Apac Construction Company purchased a forklift for $108,400 cash. It had an estimated useful life of four years and a $11,100 salvage value. At the beginning of the third year of use, the company spent an additional $9,330 that was related to the for..

Standard direct labor-hour and fixed manufacturing : Morton Company’s variable manufacturing overhead should be $4.50 per standard direct labor-hour and fixed manufacturing should be $270,000 per year. The company manufactures a single product that requires two direct labor-hours to complete. The direc..

Using straight-line method and units-of-production method : Weir Service Company purchased a copier on January 1, 2014, for $17,600 and paid an additional $340 for delivery charges. The copier was estimated to have a life of four years or 1,000,000 copies. Compute the amount of depreciation expense for the co..

User Account

All Pages