Pangea Muffin Company Inc. offers its top executives the opportunity to purchase its $1 par value common stock at a 20% discount to the market price. The employees have 3 weeks to elect to participate in the plan. The current market price of the stock is $40 per share. Employees purchased a total of 500 shares. The company issued new shares to satisfy the employees' purchases. What journal entry will the company make on the date the employees purchase the shares? Dr. Compensation expense-- $4,000 Cr. Common stock at par-$500 Cr. Common stock at par-zero Cr. Additional paid-in capital-$15,500 Dr. Cash $20,000 Dr. Cash-$16,000 Cr. Additional paid-in capital-$19,500