Brondon Corp. purchased a put option on Mykia common shares on July 7, 2023, for $480. The
Question:
Brondon Corp. purchased a put option on Mykia common shares on July 7, 2023, for $480. The put option is for 350 shares, and the strike price is $50. The option expires on January 31, 2024. The following data are available with respect to the put option:
InstructionsPrepare the journal entries for Brondon for the following dates:
a. July 7, 2023: Invests in put option on Mykia shares.
b. September 30, 2023: Brondon prepares financial statements.
c. December 31, 2023: Brondon prepares financial statements.
d. January 31, 2024: Put option expires.
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Intermediate Accounting Volume 2
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Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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