The treasurer of Sheridan 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, Sheridan purchased a call option on Ewing common shares on July 7, 2020, for $460. The call option is for 240 shares (notional value), and the strike price is $65. 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 $1,740 $71 per share Dec. 31, 2020 $975 $68 per share Jan. 4, 2021 $1,550 $70 per share Prepare the journal entry for Sheridan 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 O for the amounts.) Date Account Titles and Explanation July 7, 2020 Debit Credit Prepare the journal entry for Sheridan for September 30, 2020: Sheridan 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 O for the amounts.) Date September 30, 2020 Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit Prepare the journal entry for Sheridan for December 31, 2020: Sheridan 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 O for the amounts.) Date December 31, 2020 Account Titles and Explanation Debit Credit Prepare the journal entry for Sheridan for January 4, 2021: Sheridan 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 January 4, 2021 Account Titles and Explanation Debit Credit