Brondon Corp purchased a put option on Mykia common shares
Brondon Corp. purchased a put option on Mykia common shares on July 7, 2011, for $480. The put option is for 350 shares, and the strike price is $50. The option expires on January 31, 2012. The following data are available with respect to the put option:
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.
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