On July 10, 2014. Outback Co. invested idle cash by purchasing a call option on Toby Inc. common shares for $700. The notional value of the call option is 700 shares, and the option price is $31. (Market price of an Outback share is $31.) The option expires on February 12, 2015. The following data are available with respect to the call option.

Instructions
Prepare the journal entries for Outback for the following dates.
(a) Investment in call option on Toby shares on July 10, 2014.
(b) September 30, 2014—Outback prepares financial statements.
(c) December 31, 2014—Outback prepares financial statements.
(d) January 31, 2015—Outback settles the call option on the Tobyshares.

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Market Price of Toby Time Value of Call Date Option September 30, 2014 December 31, 2014 January 31, 2015 Shares $32 per share $35 per share $34 per share $410 50 20