On 23 October 2027, Preston Garvey Ltd had a balance of $111,000 in their options account. This reflected the full premiums paid by the holders of 100,000 options which were on the issue. Each option entitled the holder to acquire one ordinary share in Preston Garvey Ltd for $4. Each option expires on 1 December 2027. By 1 December 2027, 60 % of the options had been exercised. The remaining options duly lapsed. Which of the following is NOT a journal entry which would be part of recording the exercising of the options and issuing of the shares?

A Dr options $66000 Cr Share capital $66000

B Dr cash $100000 Cr Share Capital $100000

C Dr. Option $44400 Cr Lapsed Capital Option reserve $44400

D Dr. Cash $44400 Cr Option $44400

Answer rating: 100% (QA)

Particular Debit Credit Cash 100000 Share Capital 100000 Explanation Particulars Deb... View the full answer