Purchased Call Option Problem: On August 15, 2020 Ponder Co made an investment by purchasing a call option on Bumble Bee Inc common shares for $360. The notional value of the call option is 400 shares...

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Purchased Call Option Problem: On August 15, 2020 Ponder Co made an investment by purchasing a call option on Bumble Bee Inc common shares for $360. The notional value of the call option is 400 shares and the option price is $40 (Market price of Bumble is $40). The option expires on 1/31/21. The following data applies with respect to the call option. DateMarket Price of Bumble SharesTime Value of Call Option 9/30/20$48/share$180 12/31/20$46/share$65 1/15/21$47/share$30 Prepare journal entries for Ponder for the following dates: 1. 8/15/20 investment in options of Bumble 2. 9/30/20 Ponder prepares financial statements 3. 12/31/20 Ponder prepares financial statement 4. 1/15/21 Ponder settles the call option on the Bumble Bees shares Links for purchases of calls General search https://www.google.com/search?q=accounting+entries+for+options+and+futures&cad=b&biw=1366&bih=652&dpr=1&cad=cbv&bvch=u&sei=qAunWMuXF8yMjwPisovIDA https://www.google.com/search?q=accounting+for+purchased+call+option&cad=b&biw=1366&bih=652&dpr=1&cad=cbv&bvch=u&sei=TwynWN1vxsyPA9iSpKgK Wiley PPT available through 1st search www.wiley.com/college/warfield/0471737933/ppt/app_h.ppt Chapter from Wiley 2nd search http://www.wiley.com/college/kieso/update.pdf You tube video https://www.youtube.com/watch?v=Hg1t9ZH7NtI