Vaughn Co. purchased a put option on Echo common shares on January 7, 2020, for $396. The put option is for 420 shares, and the strike price is $84 (which equals the price of an Echo share on the purchase date). The option expires on July 31, 2020. The following data are available with respect to the put option.

Prepare the journal entries for Vaughn Co. for the following dates.

(a) January 7, 2020Investment input option on Echo shares.

(b) March 31, 2020Vaughn prepares financial statements.

(c) June 30, 2020Vaughn prepares financial statements.

(d) July 6, 2020Vaughn settles the put option on the Echo shares.

Time Value of Put Option $193 Date March 31, 2020 June 30, 2020 July 6, 2020 Market Price of Echo Shares $80 per share 82 per share 77 per share 27