Roman Corporation issued call options on 5,000 shares of POMPEI Inc.on October 21,2012.These options give the holder the right to buy POMPEI shares at $35 per share until May 17,2013.For issuing these options,Roman received $15,000.On December 31,2012 (Roman's fiscal year-end),the options traded on the Montreal Exchange for $3.50 per option.On May 17,2013,POMPEI's share price increased to $40 and the option holders exercised their options.Roman had no holdings of POMPEI shares.
Requirement:
For Roman Corporation,record the journal entries related to these call options.

Question

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The Answer of Roman Corporation issued call options on 5,000 shares of POMPEI Inc.on October 21,2012.These options give the holder the right to buy POMPEI shares at $35 per share until May 17,2013.For issuing these options,Roman received $15,000.On December 31,2012 (Roman's fiscal year-end),the options traded on the Montreal Exchange for $3.50 per option.On May 17,2013,POMPEI's share price increased to $40 and the option holders exercised their options.Roman had no holdings of POMPEI shares.
Requirement:
For Roman Corporation,record the journal entries related to these call options.

Roman Corporation Issued Call Options on 5,000 Shares of POMPEI