Brondon Corp. purchased a put option on Mykia common shares on July 7, 2011, for $480. The
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Instructions
Prepare the journal entries for Brondon Corp. for the following dates:
(a) July 7, 2011: Investment in put option on Mykia shares.
(b) September 30, 2011: Brondon prepares financial statements.
(c) December 31, 2011: Brondon prepares financial statements.
(d) January 31, 2012: Put option expires.
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.
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Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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