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 April2025. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) repare the appropriate journal entry or entries related to transactions occurring in January 2025 through March 2025 . (If no entry is equired for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Jan. 1, 2025: Record purchase of the call option contract. Note: Enter debits before credits. Srepare the appropriate journal entry or entries related to transactions occurring in January 2025 through March 2025 . (If no entry is equired for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet March 31, 2025: Provide any journal entry needed to update the intrinsic value of the option contract. Note: Enter debits before credits. 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.) Journal entry worksheet March 31, 2025: Provide any journal entry needed to update the time value of the option contract. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Indicate any amounts that Mills Corp. would have included in its March 2025 quarterly financial statements related to the option contract. repare the appropriate journal entry or entries related to settlement of the option in April2025. (If no entry is required for a ansaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet April 5, 2025: Provide any journal entry needed to update the intrinsic value of the option contract. Note: Enter debits before credits. repare the appropriate journal entry or entries related to settlement of the option in April 2025 . (If no entry is required for a ransaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet April 5, 2025: Provide any journal entry needed to update the time value of the option contract. Note: Enter debits before credits. Prepare the appropriate journal entry or entries related to settlement of the option in April2025. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet April 5, 2025: Provide the journal entry for settlement of the option contract (assume cash settlement). Note: Enter debits before credits
