Hamilton Importing Corp. $($HIC$)$ imports goods from countries around the world for sale in Canada. On December $1,$ Year $3,$ HIC purchased $11,200$ watches from a foreign wholesaler for DM$612,000$ when the spot rate was DM$1=$$$0\mathrm{.}753.$ The invoice called for payment to be made on April $1,$ Year $4.$ On December $3,$ Year $3,$ HIC entered into a forward contract with the Royal Bank at the $120-$day forward rate of $DM1=$$$0\mathrm{.}793.$ Hedge accounting is not applied.

The fiscal year$-$end of HIC is December $31.$ On this date, the spot rate was DM$1$ $$0\mathrm{.}769$ and the $90-$day forward rate was DM$1=$ $$0\mathrm{.}798.$ The payment to the foreign supplier was made on April $1,$ Year $4,$ when the spot rate was DM$1=$$$0\mathrm{.}814.$

Required:

$($a$)$ Prepare the journal entries required in Year $3$ and Year $4,$ assuming that hedge accounting is not applied. $($In cases where no entry is required, please select the option $"$No journal entry required" for your answer to grade correctly. Leave no cells blank $-$ be is required, please select the option $"$No certain to enter $"0"$ wherever required.$)$

$($b$)$ Prepare a partial statement of financial position as at December $31,$ Year $3,$ which shows accounts payable and the forward contract. $($Omit $ sign in your response.$)$

$\backslash$table$[[\backslash$table$[[$Hamilton Importing Corp.$],[$Partial Statement of Financial Position$],[$at December $31,$ Year $3]]],[$Assets$],[($Click to select$)],[$Liabilities$],[($Click to select$)]]$

$($c$)$ Prepare one journal entry to summarize the combined effect of all entries in part $($a$).($In cases where no entry is required, please select the option $"$No journal entry required" for your answer to grade correctly. Leave no cells blank $-$ be certain to enter $"0"$ wherever required.$)$

Summary journal entry

Credit

$($d$)$ Prepare the journal entries required in Year $3$ and Year $4,$ assuming that the forward contract is designated as a fair value hedge and is segregated between the spot element and forward element. $($In cases where no entry is required, please select the option $"$No journal entry required" for your answer to grade correctly. Leave no cells blank $-$ be certain to enter $"0"$ wherever required.$)$

$($d$)$ Prepare the journal entries required in Year $3$ and Year $4,$ assuming that the forward contract is designated as a fair value hedge and is segregated between the spot element and forward element. $($In cases where no entry is required, please select the option $\text{'}$No journal entry required" for your answer to grade correctly. Leave no cells blank $-$ be certain to enter $"0"$ wherever required.$)$

$($e$)$ Prepare one journal entry to summarize the combined effect of all entries in part $($d$).($In cases where no entry is required, please select the option $"$No journal entry required" for your answer to grade correctly. Leave no cells blank $-$ be certain to enter $"0"$ wherever required.$)$

Summary journal entry

Debit

Credit