The treasurer of Cullumber Corp. has read on the Internet that the stock price of Ewing Inc. is about to take off. In order to profit from this potential development, Cullumber purchased a call option on Ewing common shares on July 7, 2020, for $440. The call option is for 240 shares (notional value), and the strike price is $80. The option expires on January 31, 2021. The following data are available with respect to the call option:

				Fair Value		Market Price
Date				of Option		of Ewing Shares
Sept. 30,		2020		$1,780		$86 per share
Dec. 31,		2020		$945		$83 per share
Jan. 4,		2021		$1,550		$85 per share

Prepare the journal entry for Cullumber for July 7, 2020: Invests in call option on Ewing shares. (Credit account titles are automatically indented when the 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.)

Date	Account Titles and Explanation	Debit	Credit
July 7, 2020

Prepare the journal entry for Cullumber for September 30, 2020: Cullumber prepares financial statements. (Credit account titles are automatically indented when the 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.)

Date	Account Titles and Explanation	Debit	Credit
September 30, 2020

Prepare the journal entry for Cullumber for December 31, 2020: Cullumber prepares financial statements. (Credit account titles are automatically indented when the 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.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2020

Prepare the journal entry for Cullumber for January 4, 2021: Cullumber settles the call option net on the Ewing shares (that is, without buying the shares). (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
January 4, 2021