East Cuisine Bhd (ECB) operates a chain of fine seafood restaurants. the company makes very detailed long-term planning. On 1 April 2021 ECB determined that it would need to purchase 50,000 kilograms of Green Lobster on 30 June 2022. Because of the fluctuations in the price of Green lobster, on 1 April 2021 ECB negotiated a special forward contract to purchase 50,000 kilograms of green lobster on 30 June 2022. The price of Green lobster was RM110 per kilograms on 1 April 2021.

On 30 June 2022, ECB purchased 50,000 kilograms Green lobster at the spot price and settled the forward contract. The prices of green lobster during the hedging period were as follows:

date	spot price per kg
1 april 2021	RM110
30 june 2021	RM115
31 december 2021	RM105
30 june 2022	RM112

The appropriate discount rate throughout the hedging period is 9% and dividend yield is 5%. ECB prepares financial statements on 30 June and 31 December. The company is able to demonstrate that all the requirement for hedge accounting as per MFRS 9 Financial Instrument are met and therefore it classifies the hedging of green lobster price risk as cash flow hedges 

REQUIRED: (a) Prepare the journal entries to record the transactions over the hedging period from 2021 to 2022. Show all workings. If no entry is needed, write "no journal entry". Assume that the price of the forward contract is based on simple compounding. Round your answer to two decimal points. (14 Marks) (b) Prepare a partial Statement of Profit and Loss and Other Comprehensive Income and Statement of Financial Position for ECB for the period ended 31 December 2021 to reflect transactions related to cash flow hedges. (2 Marks) (c) Explain whether ECB has effectively hedged the cash flow for the purchase of Green lobster. (2 Marks) (d) Explain the impact to financial statement of ECB for the period ended 31 December 2021 if ECB does not apply a hedge accounting. (2 Marks)