E 19–9 - Washington Distribution - Employee share purchase plan ● LO3
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 50,000 shares at a time when the market price
of the shares on the New York Stock Exchange was $12 per share.
Required:
Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan
