It is now June 30, 2023. The journal entry for the investment in the put option had already been recorded on January 1, 2023. SmartiePants Corp prepared its financial statements on March 31, 2023 as stated above at which point the value of the option contract was $1,000 and the market price of shares was $28. No other entry has been made since March 31. However, SmartiePants was shocked to learn Groot Inc. had turned things around. Shortly after March 31, Groot Inc. shares shot up. The current market price on June 30 is $42 per share. The fair value of the option contract that just expired is $0. What is the entry made on June 30, 2023? Question 26Answer a. No entry is made because the put option has not been exercised b. (dr) gain/loss on derivatives $1,000; (cr) derivatives-financial assets/liabilities $1000 c. (dr) gain/loss on derivatives $2,500; (cr) derivatives-financial assets/liabilities $2,500 d. (dr) gain/loss on derivatives $700; (cr) derivatives-financial assets/liabilities $700 e. (dr) gain/loss on derivatives $300; (cr) derivatives-financial assets/liabilities $300

Answer rating: 100% (QA)

To determine the journal entry on June 30 2023 we need to calculate the gain ... View the full answer