Sunshine Company Issued 20 000 Share Options to Subscribe for Ordinary

Multiple Choice

Sunshine Company issued 20 000 share options to subscribe for ordinary shares. The exercise price on the options was $2 per share. If all options were exercised on the due date, the journal entry that would be recorded is:

A) $\begin{array}{lr}\text {Share capital — ordinary }&\text {Dr }&60,000\\\text {Cash }&\text {Cr }&&60,000\\\end{array}$

B) $$\begin{array} { l l l l } \text { Bhare options - ordinary } & \mathrm { Dr } & 60000 & \\\text { Share capital - ordinary } & \mathrm { Cr } & & 60000\end{array}$$
C) $\begin{array}{lr}\text {Share options reserve }&\text {Dr }&60,000\\\text {Cash }&\text {Cr }&&60,000\\\end{array}$

D) $\begin{array}{lr}\text {Cash }&\text {Dr }&60,000\\\text {Share capital — ordinary }&\text {Cr }&&60,000\\\end{array}$