The treasurer of Miller Co. has read on the Internet that the price of Wade Inc. ordinary shares is about to take off. In order to profit from this potential development, Miller Co. purchased a call option on Wade shares on July 7, 2015, for €240. The call option is for 200 shares (notional value), and the strike price is €70. (The market price of a Wade share on that date is €70.) The option expires on January 31, 2016. The following data are available with respect to the call option.

Instructions Prepare the journal entries for Miller Co. for the following dates.

(a) July 7, 2015—Investment in call option on Wade shares.

(b) September 30, 2015—Miller prepares financial statements.

(c) December 31, 2015—Miller prepares financial statements.

(d) January 4, 2016—Miller settles the call option on the Wade shares.

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Date September 30, 2015 December 31, 2015 January 4, 2016 Market Price of Wade Shares 77 per share 75 per share 76 per share Time Value of Call Option 180 880 65 30