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.

Question

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.

Quizplus · Accepted Answer

The journal entries indicate the exercise of options that were initially issued for a total of $3,500,000 and the exercise of these options involves shares with a value of $30,000,000, suggesting an exercise price of $30 per option.

Which of the Following Statements Correctly Describes This Journal Entry