Record all necessary entry related to option on june

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Reference no: EM132727553

On June 1, 2018, DCI purchased a call option for $450, which gave it the right to buy 10,000 shares of iLines, Inc., for $54 each until December 1, 2018 . On that date, iLines' shares were being traded for $52. On June 30, 2018, the option contract could be traded in the market at $96,000. On December 1, 2018, with the shares being traded at $70 each, DCI exercised the option and took delivery of the shares of iLines.

Problem 1: You are required to record all necessary entry/entries related to this option on:

a] June 1, 2018 when DCI acquired the call option.
b] June 30, 2018, when DCI closed its books of accounts.
c] December 1, 2018 assuming DCI exercises the call option and takes delivery of the shares of iLynes.
d] December 1, 2018, assuming DCI settles the call option for cash without taking delivery of the iLynes shares

Reference no: EM132727553

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