On August 15, 2019, Sweet Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $792. The notional value of the call option is 880 shares, and the option price is $88. The option expires on January 31, 2020. The following data are available with respect to the call option.

Date Market price of counting crow share Time value of call option
September 30, 2019 $48 per share $180
December 31, 2019, $46 per share $65
January 15, 2020, $47 per share $30

Prepare the journal entries for Outcast for the following dates.
(a) Investment in a call option on Counting Crows shares on August 15, 2019.
(b) September 30, 2019-Outkast prepares financial statements.
(c) December 31, 2019-Outkast prepares financial statements.
(d) January 15, 2020-Outkast settles the call option on the Counting Crows shares.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.