Yokochan Bakeries specializes in making cakes, cookies and other pastries out of rice flour which they grind themselves. Yokochan anticipates purchasing 40000 pounds of rice in Jan 2009. On Nov 1 2008 Yokochan entered into a futures contract with Sagara Growers to purchase 40,000 pounds of rice on january 1 2009 at $0.50 per pound. On December 31, 2008 and Jan 1 2009 the prevailing market price for rice is $0.55 per pound. Yokochan purchases the rice and settles the futures contract on january 1 2009. Make the necessary entries on Yokochan's books at
a. November 1 2008
b. December 31 2008
c. January 1 2009