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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 15% of their eligible compensation, subject to any plan limitations. The purchase price would be 85% 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 221,071, 164,100 and 221,071 shares under the ESPP for $38.0 million, $29.1 million and $14.3 million, respectively. There were 3,620,749 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.)

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Answer:

Date                General journal                       Debit                Credit

Dec 31, 2017   Cash                                   $38,000,000

                       Compensation expense   $6,705,882

                       [($38,000,000/85%)*15%]

                               Common stock [221,071 * $0.001]             $221

                               Paid in capital - in excess of par               $44,705,661

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