2 (15 marks) Hull Manufacturing Corp. (HMC), a Canadian company, manufactures instruments used to measure the moisture content of barley and wheat. The company sells primarily to the domestic market, but in Year 3, it developed a small market in Argentina. In Year 4, HMC began purchasing semi-finished components from a supplier in Romania. The management of HMC is concerned about the possible adverse effects of foreign exchange fluctuations. To deal with this matter, all of HMC's foreign- currency-denominated receivables and payables are hedged with contracts with the company's bank. The year-end of HMC is December 31. The following transactions occurred late in Year 4: . On October 15, Year 4, HMC purchased raw inventory components from its Romanian supplier for 816,000 Romanian leus (RL). On the same day, HMC entered into a forward contract for RON816,000 at the 60-day forward rate of RON1 $0.324. The Romanian supplier was paid in full on December 15, Year 4. On December 1, Year 4, HMC made a shipment to a customer in Argentina. The selling price. was 2,516,000 Argentinean pesos (ARS), with payment to be received on January 31, Year 5. HMC immediately entered into a forward contract for ARS2,516,000 at the two-month forward rate of ARS1 = $0.142. During this period, the exchange rates were as follows: October 15, Year 4 December 1, Year 4 Spot Rates RON1 $0.311 ARS1 = 0.165 December 15, Year 4RON1 = $0.303 December 31, Year 4 ARS1 = $0.149 Hedge accounting is not adopted. Required: Forward Rates RON1 = $.324 ARS1 = $.142 ARS1 = $0.138 Prepare the Year 4 journal entries to record the transactions described above and any year-end adjusting entries (include any memo entries that would be required)