Question

EcoMotors's disclosure notes for the year ending December 31, 2017, included the following regarding its $0.001 par common stock: Employee Stock Purchase Plan Our employees are eligible to purchase our common stock through payroll deductions of up to 10% of their eligible compensation subject to any plan limitations. The purchase price would be 90% of the lower of the fair market value on the first and last trading days of each six-month offering period. During the years ended December 31, 2017, 2016, and 2015, we issued 220,971, 164,000 and 220,971 shares under the ESPP for $37.9 million, $29.0 million and $14.2 million, respectively. There were 3,619,749 shares available for issuance under the ESPP as of December 31, 2017 Required: Prepare the journal entry that summarizes EcoMotors's employee share purchases for the year ending December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) Answer is complete but not entirely correct Credit No Date General Journal Debit December 31, 201 Cash 1 37,900,000 Compensation expense 4,211,111 Common stock 0X Paid-in capital excess of par 42,111,111

Answer 1

No.	Date	Account Titles and Explanation	Debit	Credit
1	December 31, 2017	Cash	$       3,79,00,000
		Compensation expense	$           42,11,111
		Common stock (220971 X $0.001)		$                       221
		Paid - in - capital - excess of par		$       4,21,10,890