Prepare journal entries to record the following transactions

On November 21, Snickers Co., a manufacturer of chocolate candies (had to get chocolate in here somewhere!), contracted to purchase a shipment of cocoa beans for $40,000, delivery to be made in the following spring. Snickers uses the perpetual inventory method.

#1 Because a record crop is expected next year, the price of the cocoa beans had fallen to $36,000 by year end. Prepare the journal entry on December 31 related to this purchase commitment.

#2 If the price of cocoa beans was $33,000 when the contract was closed in the spring, prepare the journal entry to record the purchase of cocoa beans for cash.

#3 If instead, when the contract closed the price of cocoa beans was $43,500. Prepare the journal entry to record the purchase of cocoa beans for cash