On January 2,2020, Novak Company purchases a call option for $280 on Merchant common stock. The call option gives Novak the option to buy 930 shares of Merchant at a strike price of $49 per share. The market price of a Merchant share is $49 on January 2. 2020 (the intrinsic value is therefore $0 ). On March 31,2020 , the market price for Merchant stock is $53 per share, and the time value of the option is $200. (a) Prepare the journal entry to record the purchase of the call option on January 2,2020. (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 0 for the amounts.] The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above. On January 2, 2020, Novak Company purchases a call option for $280 on Merchant common stock. The call option gives Novak the option to buy 930 shares of Merchant at a strike price of $49 per share. The market price of a Merchant share is $49 on January 2 . 2020 (the intrinsic value is therefore \$0). On March 31, 2020, the market price for Merchant stock is \$53 per share, and the time value of the option is $200. (a) Prepare the journal entry to record the purchase of the call option on January 2,2020. (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.)