Johnstone Co. purchased a put option on Ewing ordinary shares on July 7, 2015, for €240. The put option is for 200 shares, and the strike price is €70. (The market price of an ordinary share of Ewing on that date is €70.) The option expires on January 31, 2016. The following data are available with respect to the put option.

Instructions Prepare the journal entries for Johnstone Co. for the following dates.

(a) July 7, 2015—Investment in put option on Ewing shares.

(b) September 30, 2015—Johnstone prepares financial statements.

(c) December 31, 2015—Johnstone prepares financial statements.

(d) January 31, 2016—Put option expires.

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Date September 30, 2015 December 31, 2015 January 31, 2016 Market Price of Ewing Shares 77 per share 75 per share 78 per share Time Value of Put Option 125 50 0