On January 1, 2025, Mills Corp. purchased a call option on shares of XYZ stock. Terms of the contract were as follows: Number of shares: 100 Strike price: $240 per share Expiration date: April 30, 2025 Total cost of the option contract: $100 Seller of the option contract: First Investment Bank On January 1, 2025, XYZ stock was trading at $240 per share. The following additional information is known: On March 31, 2025, the price of XYZ stock was $260 per share. A market appraisal indicated that the time value of the option contract was $80. On April 5, 2025, the price of XYZ stock was $255 per share. A market appraisal indicated that the time value of the option contract was $70. On this date, Mills settled the option contract. Required: 1. Prepare the appropriate journal entry or entries related to transactions occurring in January 2025 through March 2025. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Indicate any amounts that Mills Corp. would have included in its March 2025 quarterly financial statements related to the option contract. 3. Prepare the appropriate journal entry or entries related to settlement of the option in April 2025. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Req 1 Req 2 Req 3 Prepare the appropriate journal entry or entries related to transactions occurring in January 2025 through March 2025. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet General Journal No Event 1 1 Call option Cash 2 2 3 3 Call option Gain on investment (unrealized, NI) Loss on investment (unrealized, NI) Call option < Req 1 Req 2 > Debit Credit 100 ........ 100 2,000 2,000 20 20 20 20 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Indicate any amounts that Mills Corp. would have included in its March 2025 quarterly financial statements related to the option contract. Balance Sheet (current assets): Call option 2,080 Income Statement (partial): Net gain (unrealized, NI) $ 2,100 < Req 1 Req 3 > Req 1 Req 2 Req 3 Prepare the appropriate journal entry or entries related to settlement of the option in April 2025. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal 1 1 Loss on investment (unrealized, NI) Call option 2 2 Loss on investment (unrealized, NI) Call option 3 3 Cash Loss on settlement of call option Call option < Req 2 Req 3 > Debit Credit 500 10 1,060 500 110 510 1,570