Microsoft Corporation’s disclosure notes for the year ending June 30, 2020, included the following regarding its $0.00000625 par common stock:

Required:
Prepare the journal entry that summarizes Microsoft’s employee share purchases for the year ending June 30, 2020.

Transcribed Image Text:

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 $142.22 2019 11 $104.85 2018 13 $76.40 As of June 30, 2020, 96 million shares of our common stock were reserved for future issuance through the ESPP.