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Good Morning, I need help with theassignment attached, thanks On August 15, 2016, Sarasota Co. invested idle cash by purchasing a call option on Counting
Good Morning, I need help with theassignment attached, thanks
On August 15, 2016, Sarasota Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $540. The notional value of the call option is 600 shares, and the option price is $60. The option expires on January 31, 2017. The following data are available with respect to the call option. Date September 30, 2016 December 31, 2016 January 15, 2017 Market Price of Counting Crows Shares $72 per share $69 per share $71 per share Time Value of Call Option $270 98 45 Prepare the journal entries for Sarasota for the following dates. (a) (b) (c) (d) Investment in call option on Counting Crows shares on August 15, 2016. September 30, 2016Sarasota prepares financial statements. December 31, 2016Sarasota prepares financial statements. January 15, 2017Sarasota settles the call option on the Counting Crows shares. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No . Date Account Titles and Explanation (a) (b) (To record the change in intrinsic value.) (To record the time value change.) (c) (To record the change in intrinsic value.) Debit Credit (To record the time value change.) (d) (To record the time value change.)Step by Step Solution
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