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On August 15, 2019, Windsor Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $630. The notional
On August 15, 2019, Windsor Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $630. The notional value of the call option is 700 shares, and the option price is $70. The option expires on January 31, 2020. The following data are available with respect to the call option. Market Price of Counting Date Crows Shares Time Value of Call Option September 30, 2019 $84 per share $315 December 31, 2019 $81 per share 114 January 15, 2020 $82 per share 53 Prepare the journal entries for Windsor for the following dates. (a) Investment in call option on Counting Crows shares on August 15, 2019. (b) September 30, 2019-Windsor prepares financial statements. (c) December 31, 2019-Windsor prepares financial statements. (d) January 15, 2020-Windsor 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 O for the amounts.)
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