Which of the Following Statements Correctly Describes This Journal Entry

question 72

Multiple Choice

Which of the following statements correctly describes this journal entry: $$\begin{array} { | c | l | c | r | } \hline \mathrm { Dr } & \text { Cash at bank } & 30000000 & \\\hline \mathrm { Cr } & \text { Share capital } & & 30000000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Share options (1 } 000000 \text { options) } & 3500000 & \\\hline \mathrm { Cr } & \text { Share capital } & & 3500000 \\\hline\end{array}$$

• A) The issue of options, costing $3.50 each.
• B) The issue of options, costing $30 each.
• C) The exercise of options, with a current market value per share of $3.50.
• D) The exercise of options, initially costing $3 500 000 to issue and with an exercise price for each option of $30.

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Definitions:

Earth Rotation

The spinning of the Earth around its own axis, which takes approximately 24 hours to complete and results in day and night.

Nitrogenase Enzyme

An enzyme complex responsible for the reduction of atmospheric nitrogen to ammonia, a critical step in the nitrogen fixation process.

Nitrogen Cycle

The biogeochemical cycle that describes the movement and transformation of nitrogen through the atmosphere, living organisms, and soil.

Nitrogen Fixation

A process by which nitrogen in the Earth's atmosphere is converted into ammonia or related nitrogenous compounds in soil.