Prepare journal entries, general ledgers, trial balance, income statement, and balance sheet for the following scenario.

Freedom Fund had the following trades in GE in the options market through ADC brokers, and on January 1 introduced $100,000 as capital.

Transcribed Image Text:

Date Product 25-Jan-X1 Call Strike Price $50 22-Feb-X1 Call $50 11-Mar-X1 Call $50 16,000 Expiry Quantity Rate B/S 16-Mar-X1 10,000 $5.00 B 16-Mar-X1 16,000 $4.00 16-Mar-X1 Brokerage $540 B $620 $3.00 S $320 Liquidation Method FIFO Market Rate of Underlying Stock, GE January 31: 40.00