Question: Johnstone AG purchased a put option on Ewing ordinary shares on July 7, 2019, for ¬240. The put option is for 200 shares, and the

Johnstone AG purchased a put option on Ewing ordinary shares on July 7, 2019, for ‚¬240. The put option is for 200 shares, and the is ‚¬70. (The market price of an ordinary share of Ewing on that date is ‚¬70.) The option expires on January 31, 2020. The following data are available with respect to the put option.

Instructions
Prepare the journal entries for Johnstone Co. for the following dates.
a. July 7, 2019-Investment in put option on Ewing shares.
b. September 30, 2019-Johnstone prepares financial statements.
c. December 31, 2019-Johnstone prepares financial statements.
d. January 31, 2020-Put option expires.

Date Market Price of Ewing Shares Time Value of Put Option 125 September 30, 2019 December 31, 2019 77 per share 75 per share 78 per share 50 January 31, 2020

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