DEF Ltd buys a December put option for ten $100 000 10% treasury bonds at a premium of $3.65 on 1 January 2014. DEF Ltd prepares its financial statements as at 30 June. On 30 June 2014 the price for a December put option for ten $100 000 10% treasury bonds is $3.05. DEF Ltd sells the put option on 31 July 2014 when the price is $4.02. Required:

Provide the accounting journal entries to record the option contract transactions