employees are eligible to purchase common Real World Financials Kartovac Motor\'
ID: 2412294 • Letter: E
Question
employees are eligible to purchase common Real World Financials Kartovac Motor's disclosure notes for the year ending December 31,2015, ncluded the following regarding its $0.001 par common stock Employee Stock Purchase Plan Employees are eligible to purchase common stock through payroll deductions of up to 10% of their eligible compensation subect to any plan limitations. The purchase price of the shares on each purchase date is equal to 90% of the lower of the fair market value of our common stock on the first and last trading days of each six-month offering period. During the years ended December 31, 2015 2014 and 2013, 220,971, 164,000 and 518,873 shares were issued under the ESPP fo $379 million, $290 million and $14.2 million, respectively A total of 3.619. 749 shares of common stock have been reserved for issuance under the ESPP and there were 2,119851 nes shares available for issuance under the ESPP as of December 31, 2015 Required: Prepare the journal entry that summarizes employee share purchases for the year ending December 31. 2015 (If no entry is required decimal plece (.e.. 5,500,000 should be entered as 5.5)) levent, select "No journal entry required" in the first account field. Enter your answers in millions rounded to1Explanation / Answer
Date Description Debit Credit Dec 31,2015 Cash $37.90 Compensation expense [($37.9 × 10%) $3.79 Common stock [220,971 × $0.001]/1,000,000 $0.00 Paid in capital—excess of par $41.69
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