Roman Corporation Issued Call Options on 5,000 Shares of POMPEI

question 24

Essay

Roman Corporation issued call options on 5,000 shares of POMPEI Inc.on October 21,2012.These options give the holder the right to buy POMPEI shares at $35 per share until May 17,2013.For issuing these options,Roman received $15,000.On December 31,2012 (Roman's fiscal year-end),the options traded on the Montreal Exchange for $3.50 per option.On May 17,2013,POMPEI's share price increased to $40 and the option holders exercised their options.Roman had no holdings of POMPEI shares.
Requirement:
For Roman Corporation,record the journal entries related to these call options.