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CUITEN ALEMPIOEres On August 15, 2019, Tamarisk Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $594. The

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CUITEN ALEMPIOEres On August 15, 2019, Tamarisk Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $594. The notional value of the call option is 660 shares, and the option price is $66. The option expires on January 31, 2020. The following data are available with respect to the call option. Market Price of Counting Crows Shares Date Time Value of Call Option September 30, 2019 $79 per share $297 December 31, 2019 $76 per share 107 January 15, 2020 $78 per share 50 Prepare the journal entries for Tamarisk for the following dates. (a) Investment in call option on Counting Crows shares on August 15, 2019. (b) September 30, 2019-Tamarisk prepares financial statements. (c) December 31, 2019-Tamarisk prepares financial statements. (d) January 15, 2020-Tamarisk settles the call option on the Counting Crows shares. No. Date Account Titles and Explanation Debit Cred (a) (b) (To record the change in intrinsic value.) (To record the time value change.) (c) arch Ti 84F Sunny (To record the time value change.) (c) (To record the change in intrinsic value.) (To record the time value change.) (d) (To record the time value change.) arch 84F Sunny

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