Yates Co. Purchased a put option on Dixon common shares on January 7, 2014, for $270. The put option is for 300 shares, and the strike price is $64. The option expires on July 31, 2014. The following data are available with respect to the put option:

Date Market Price of Dixon shares Time Value of Put Option

March 31, 2014 $60 per share $150

June 30, 2014 $62 per share 68

July 6, 2014 $58 per share 20

Required:

Prepare the journal entries for Yates Co. for the following dates:

1. January 7, 2014-Investment in put option on Dixon shares.
2. March 31, 2014-Yates prepares financial statements.
3. June 30, 2014-Yates prepares financial statements.

July 6, 2014- Yates settles the put option on the Dixon shares.