Working Paper 284
Bob Jensen at Trinity University


Exhibit 4
FloorIT Bank Journal Entries
(Students are required to fill in the numbers shown in red.)


  Date
______

June 17

 

 

June 30

 

 

July 31

 

 

Aug. 31

 

 

Sept. 17

 

 

Sept. 17

 

 


Dec. 17


   Accounts Debited or (Credited)
_________________________________________

Cash
Options contracts
Interest expense (revenue)
Other comprehensive income (OCI)
--To record purchase of 50 call option contracts

Cash
Options contracts
Interest expense (revenue)
Other comprehensive income (OCI)
--To record value adjustment of option contracts

Cash
Options contracts
Interest expense (revenue)
Other comprehensive income (OCI)
--To record value adjustment of option contracts

Cash
Options contracts
Interest expense (revenue)
Other comprehensive income (OCI)
--To record value adjustment of option contracts

Cash
Options contracts
Interest expense (revenue)
Other comprehensive income (OCI)
--To record option contract settlement

Cash
Options contracts
Notes receivable
Interest expense (revenue)
Other comprehensive income (OCI)
--To record loan transaction for $25 million

Cash
Options contracts
Notes receivable
Interest expense (revenue)
Other comprehensive income (OCI)
--To record payoff of $25 million loan

 

  Debit
(Credit)

__________

(90,625)
  90,625

 

 

    8,125
  16,875
(25.000)

 

(30,000)
  12,500
  17,500



(12,500)
55,000
(42,500)


 93,750
(56,250)
(87,500)
50,000


(25,000,000)

  25,000,000

 


  25,278,125

(25,000,000)
      (278,125)


Balance
__________

(90,625)
 90,625

 


(90,625)
  98,750
  16,875
(25,000)


(90,625)
  68,750
  29,375
  (7,500)


(90,625)
  56,250
  84,375
(50,000)


    3,125

  (3,125)

 

(24,996,875)

  25,000,000
         (3,125)

 

      281,250


    (281,250)