Captain Canuck Ine. Sells golden maple syrup to many countries arouates of anned. on Decent, I, Year 2, the compatly soided maple wyrup to a client in United Scale us A9000 (inording.

It may have been Captain America). The selling price was established at US$ 180,000 with

payment to be received on March 1, Year 23,

On December 3, Year 22, the company entered into a hedge with a Caradian Bank at the god.

forward rate of USS1 = CDNS1.238. The forward contract was designated as a cash value hedge

of the amount due from the American customer. Captain Canuck Inc. uses the net method to

record the forward contract.

Captain Canuck Inc. received the payment from its American client on March 1, Year 23. The company's year end is on December 31. The two-month forward rate for US dollars was CDN$1.255 on the date.

Select exchange rates were as follows:

Date

December 1, Year 22

December 3, Year 22

December 31, Year 22

Average for the year 22

March 1, Year 23

Spot rates

US$1 = CDN$1.2355

USS 1 = CDN$1.2355

US$1 = CDN$1.2455

US$1 = CDN$1.25

US$1 = CDN$1.2480

Forward rates

US$1 = CDN$1.238

US$1 = CDN$1.256

US$1 = CDN$1.248

Required:

Prepare all relevant journal entries arising from these transactions/events. [19)

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