Which would be part of recording the exercising of options

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Question 1: On 23 October 2027, Preston Garvey Ltd had a balance of $100,000 in their options account. This reflected the full premiums paid by the holders of 100,000 options which were on issue. Each option entitled the holder to acquire one ordinary share in Preston Garvey Ltd for $4. Each option expires on 1 December 2027. By 1 December 2027, 25% of the options had been exercised. The remaining options duly lapsed. Which of the following is NOT a journal entry which would be part of recording the exercising of the options and issuing of the shares?

a) Dr Options $25,000 Cr Share Capital $25,000

b) Dr Cash $100,000 Cr Share Capital $100,000

c) Dr Options $75,000 Cr Lapsed Options Reserve $75,000

d) Dr Cash $75,000 Cr Options $75,000

Reference no: EM132608791

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