On August 15, 2021, Madison Company Issued 80,000 Options on the Shares

question 62

Essay

On August 15, 2021, Madison Company issued 80,000 options on the shares of MVC (Middefield Valley Corporation). Each option gives the option holder the right to buy one share of MVC at $70 per share until March 16, 2022. Madison received $800,000 for issuing these options. At the company's year-end of December 31, 2021, the options contracts traded on the Montreal Exchange at $9.50 per contract. On March 16, 2022, MVC shares closed at $63 per share, so none of the options was exercised.
Required:
Record the journal entries related to these call options.

---

Definitions:

Monogamy

The marriage practice of a sexually exclusive marriage with one spouse at a time.

Gender Socialization

The process by which individuals learn the cultural norms and expectations traditionally associated with their gender through family, media, education, and other societal influences.

Conflict Theorists

Scholars who view social life as a competition, and focus on the distribution of resources, power, and inequality.

Extended Family

A familial grouping that extends beyond the nuclear family to include grandparents, aunts, uncles, and other relatives.