On August 15, 2016, Martinez Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $792. The notional value of the call option is 880 shares, and the option price is $88. The option expires on January 31, 2017. The following data are available with respect to the call option.
Prepare the journal entries for Martinez for the following dates.
(a)
Investment in call option on Counting Crows shares on August 15, 2016.
(b)
September 30, 2016Martinez prepares financial statements.
(c)
December 31, 2016Martinez prepares financial statements.
(d)
January 15, 2017Martinez settles the call option on the Counting Crows shares.
(Credit account titles are automatically indented when 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.)
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