1. Employee Stock Purchase

XYZ Company permits any of its employees to buy its $5 par value common shares directly from the company. There are no brokerage fees, and shares can be purchased at a 3% discount from the market price of $20 per share. A total of 10,000 employees took advantage of this stock purchase plan. In recording the employee stock purchase, which of the following is correct?

a. Credit paid-in calpital- excess of par $144,000

b. debit compensation expense $6,000

c. debit cash $200,000

d. credit common stock $194,000

2. weighted average shared

XYZ Company had 120,000 shares of stock outstanding on January 1. On May 1, XYZ issued 60,000 shares. On July 1, the company purchased 10,000 shares for the treasury. On August 1, it distributed a 2-for-1 stock dividend. Finally, XYZ issued 10,000 new shares on October 1. Compute the weighted-average number of shares outstanding.

a. 315,000

b. 312,500

c. 320,000

d. 332,000