Which would be one of the journal entries used to record

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Problem 1: On 15 January 2020, the equity section of Kratos Ltd?s balance sheet included the following: Share Capital ? Ordinary (100,000 fully paid shares) $500,000. Options (400,000 fully paid options) $80,000. Each option, if exercised, entitled the holder to acquire one ordinary share for $4, payable in full upon exercise of the option. By 1 February 2020, the exercise date of the options, 10% of the options were exercised. The remaining options duly lapsed. Which of the following would be one of the journal entries used to record the options related transactions?

Option 1: Dr Options 80 000 Cr Share Capital 80 000
Option 2: Dr Cash 1 600 000 Cr Share Capital 1 600 000
Option 3: Dr Options 80 000 Cr Lapsed Options Reserve 80 000
Option 4: Dr Cash 160 000 Cr Share Capital 160 000

Reference no: EM132982390

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