Mega Company believes the price of oil will increase in the coming months. Therefore, it decides to purchase call options on oil as a price-risk-hedging device to hedge the expected increase in prices on an anticipated purchase of oil. On November 30, 20X1, Mega purchases call options for 12,000 barrels of oil at $36 per barrel at a premium of $2 per barrel with a March 1, 20X2, call date. The following is the pricing information for the term of the call: The information for the change in the fair value of the options follows: On March 1, 202, Mega sells the options at their value on that date and acquires 12,000 barrels of oil at the spot price. On June 1, 202, Mega sells the oil for $40 per barrel. Required: a. Prepare the journal entry required on November 30, 20X1, to record the purchase of the call options. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. b. Prepare the adjusting journal entry required on December 31,201, to record the change in time and intrinsic value of the options. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the decrease in the time value of the options to current earnings. Note: Enter debits before credits. D. Prepare the adjusting journal entry required on December 31,201, to record the change in time and intrinsic value of the options. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the increase in the intrinsic value of the options to other comprehensive income. Note: Enter debits before credits. c. Prepare the entries required on March 1,202, to record the expiration of the time value of the options, the sale of the options, and the purchase of the 12,000 barrels of oil. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the decrease in the time value of the options to current earnings. The options have expired. Note: Enter debits before credits. c. Prepare the entries required on March 1,202, to record the expiration of the time value of the options, the sale of the options, and the purchase of the 12,000 barrels of oil. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the increase in the intrinsic value of the options to other comprehensive income. Note: Enter debits before credits. c. Prepare the entries required on March 1,202, to record the expiration of the time value of the options, the sale of the options, and the purchase of the 12,000 barrels of oil. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the sale of the call options. Note: Enter debits before credits. c. Prepare the entries required on March 1,202, to record the expiration of the time value of the options, the sale of the options, and the purchase of the 12,000 barrels of oil. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the purchase of 12,000 barrels of oil at the spot price of $39 per barrel. Note: Enter debits before credits. d. Prepare the entries required on June 1,202, to record the sale of the oil and any other entries required as a result of the option. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the sale of 12,000 barrels of oil at $40 per barrel. Note: Enter debits before credits. d. Prepare the entries required on June 1,202, to record the sale of the oil and any other entries required as a result of the option. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to recognize the cost of the oil sold. Note: Enter debits before credits. d. Prepare the entries required on June 1,202, to record the sale of the oil and any other entries required as a result of the option. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to reclassify into earnings the other comprehensive income from the cash flow hedge. Note: Enter debits before credits