1.) Journal Entries:

• Jan. 1, 2022: Record purchase of the call option contract

• March 31, 2022: Provide any journal entry needed to update the intrinsic value of the option contract.

• March 31, 2022: Provide any journal entry needed to update the time value of the option contract.

3.) Journal Entries:

April 5, 2022: Provide any journal entry needed to update the intrinsic value of the option contract.

April 5, 2022: Provide any journal entry needed to update the time value of the option contract.

April 5, 2022: Provide the journal entry for settlement of the option contract (assume cash settlement).

Please help! Thanks!

On January 1, 2022, Mills Corp. purchased a call option on shares of XYZ stock. Terms of the contract were as follows: Number of shares: 100 Strike price: $160 per share Expiration date: April 30, 2022 Total cost of the option contract: $110 Seller of the option contract: First Investment Bank On January 1, 2022, XYZ stock was trading at $160 per share. The following additional information is known: On March 31, 2022, the price of XYZ stock was $180 per share. A market appraisal indicated that the time value of the option contract was $90. On April 5, 2022, the price of XYZ stock was $175 per share. A market appraisal indicated that the time value of the option contract was $80. On this date, Mills settled the option contract. Required: 1. Prepare the appropriate journal entry or entries related to transactions occurring in January 2022 through March 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Indicate any amounts that Mills Corp. would have included in its March 2022 quarterly financial statements related to the option contract. 3. Prepare the appropriate journal entry or entries related to settlement of the option in April 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Reg 1 Req 2 Req3 Indicate any amounts that Mills Corp. would have included in its March 2022 quarterly financial statements related to the option contract. Balance Sheet (current assets): Income Statement (partial): Net gain (unrealized, NI)