On August $1,2023,$ SJW Ltd$.$ purchased a call option from DDR Investments Corporation. The option gave SJW the right to buy $14,000$ shares in a third company, MGL Ltd$.,$ at a price of $\backslash (\backslash$$ $21\mathrm{.}00\backslash )$ per share. On the day SJW purchased the option, MGL shares were trading at $\backslash (\backslash$$ $21\mathrm{.}00\backslash )$ each. SJW paid $\backslash (\backslash$$ $600\backslash )$ for the options. On August $31,2023,$ the MGL shares were trading at $\backslash (\backslash$$ $31\mathrm{.}00\backslash )$ each, and the options for MGL shares were trading at $\backslash (\backslash$$ $21,600\backslash ).$ On September $15,$ SJW settled the options in cash when the MGL shares were trading at $\backslash (\backslash$$ $32\mathrm{.}50\backslash )$ and the options were trading at $\backslash (\backslash$$ $161,000\backslash ).$

$($b$)$

Your answer is correct.

Prepare the journal entries to record the above transactions. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.$)$

$($c$)$

Your answer is partially correct.

Prepare the September $15$ journal entry assuming SJW accepted the shares in MGL instead of cash. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.$)$

$($To take delivery of the shares using the option.$)$