Sunshine Company issued 20 000 share options to subscribe for ordinary shares. The exercise price on the options was $2 per share. If all options were exercised on the due date, the journal entry that would be recorded is:

A- share capital - ordinary dr 60000 and cash cr 60000

B- share option - ordinary dr 60000 and share capital - ordinary cr 60000

C- cash dr 60000 and share capital - ordinary cr 60000 4- share option reserve dr 60000 and cash cr 60000

D- Share options reserve dr 60000 and cash cr 60000

The correct answer is C but can someone explain it in details how to solve it??