Supplemental Problem 15-1

Easy Corp. provides a stock subscription plan to its employees as part of an Employee Stock Ownership Plan (ESOP). Fifty employees take advantage of the offer and subscribe to 100 shares each of $1 par Common Stock at $12 per share when the market price is $15 per share.

The employees will have a payroll deduction of $120 per month until the stock is paid for (10 months), then the stock will be issued to them.

Required:

Record the following:

1. The journal entry by Easy Corp at the date of the offer.

2. A representative monthly entry

3. The issuance of the stock

Now assume Joe Schmo, an employee, leaves the company after he makes five payments.

1. Make the entry assuming he gets his money returned.

2. Make the entry assuming he was fired and forfeits his payments.

3. Make the entry assuming Easy Corp issues stock equal to the amount purchased.

4. Make the entry assuming Easy Corp resells the stock for him at $12 per share. It

   cost Easy Corp $25 in transfer costs,