Assume that a firm made a noncancelable purchase commitment to buy 100,000 gallons for jet fuel in 2018 on 1/1/18 for $1.50 a gallon when the market price was $1.65 per gallon.

a) Prepare the journal entry the firm would record on 1/1/18.

b) The firm needed to produce a balance sheet on 6/30/18 when the market price of the jet fuel was $1.35 and before they had purchased any fuel. Prepare the journal entry they would need to record on 6/30/18

c) The firm purchased the 100,000 gallons of jet fuel on 7/31/18 for the contract price when the market price was still $1.35 per gallon.