Kearney Corporation sold call options on 20,000 shares of BCE Inc. on October 21, 2012. These options give the holder the right to buy BCE shares at $33 per share until May 17, 2013. For issuing these options, Kearney received $30,000. On December 31, 2012 (Kearneys fiscal year-end), the options traded on the Montreal Exchange for $3.50 per option. On May 17, 2013, BCEs share price increased to $37 and the option holders exercised their options. Kearney had no holding of BCE shares.

For Kearney Corporation, record the journal entries related to these call options.