4 & 5

Required information On May 1, 2021, a company purchased a call option contract on shares of ABC stock for speculative purposes. The call option was for 100 shares at a strike price of $130 per share, with an explration of July 31, 2021. The company settled the option on July 15 (assume cash settlement). Additional information: May 1 June 30 July 15 Price per share of ABC stock $130 $133 $138 Time value of option $110 $100 $90 Use the information above to answer the questions below. The journal entry recorded on June 30 to update time value of the option includes a (Click to select) (Click to select) Loss recorded in Net Income of $10 Loss recorded in Other Comprehensive Income of $400 Loss recorded in Net Income of $400 Loss recorded in Other Comprehensive Income of 510 Required information On May 1, 2021, a company purchased a call option contract on shares of ABC stock for speculative purposes. The call option was for 100 shares at a strike price of $130 per share, with an expiration of July 31, 2021. The company settled the option on July 15 (assume cash settlement). Additional information: May 1 June 30 July 15 Price per share of ABC stock $130 $133 $138 Time value of option $110 $100 $90 Use the information above to answer the questions below The balance of the Coll Option account as of July 15 (immediately prior to settlement) is. Click to select) (Click to select) $800 $710 $500 $0 5890