On April 1, 20X1, Peanut Company purchased a call option for 10,000 shares of Sax Company that expires on October 1, 20X1. On the date that Peanut Company purchases the option, the strike price is $25. Additionally, the option is purchased for $10,000. On April 2, 20X1, the price per share of Sax Company stock is $23.75. The price remains at $23.75 through the date of the expiration of the call option. Prepare the journal entries to record the initial acquisition of the option and the expiration of the option 6 months later.