On April 1, 2020, Blossom Ltd. paid $150 for a call to buy 530shares of NorthernTel at a strike price of $25 per share any timeduring the next six months. The market price of NorthernTel’sshares was $25 per share on April 1, 2020. On June 30, 2020, themarket price for NorthernTel’s stock was $35 per share, and thefair value of the option was $8,200.

Prepare the journal entry to record the purchase of the calloption on April 1, 2020. (Credit account titles areautomatically indented when the amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for theaccount titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
April 1, 2020	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

  

  

Prepare the journal entry to recognize the change in the calloption’s fair value as at June 30, 2020. (Creditaccount titles are automatically indented when the amount isentered. Do not indent manually. If no entry is required, select"No Entry" for the account titles and enter 0 for theamounts.)

Date	Account Titles and Explanation	Debit	Credit
June 30, 2020	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

  

  

Prepare the journal entry that would be required if Blossom Ltd.exercised the call option and took delivery of the shares as soonas the market opened on July 1, 2020. (Credit accounttitles are automatically indented when the amount is entered. Donot indent manually.)

Date	Account Titles and Explanation	Debit	Credit
July 1, 2020	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount