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 HMCs foreign-currency-denominated receivables and payables are hedged with contracts with the companys bank. The year-end of HMC is December 31.

The following transactions occurred late in Year 4:

• On October 15, Year 4, HMC purchased components from its Romanian supplier for 811,000 Romanian leus (RL). On the same day, HMC entered into a forward contract for RON811,000 at the 60-day forward rate of RON1 = $0.419. 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 2,511,000 Argentinean pesos (ARS), with payment to be received on January 31, Year 5. HMC immediately entered into a forward contract for ARS2,511,000 at the two-month forward rate of ARS1 = $0.237.

During this period, the exchange rates were as follows:

Spot Rates	Forward Rates
October 15, Year 4	RON1 = $0.406
December 1, Year 4	ARS1 = 0.260
December 15, Year 4	RON1 = $0.398
December 31, Year 4	ARS1 = $0.244

Prepare the Year 4 journal entries to record the transactions described above and any year-end adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
1	Oct 15, Year 4	Inventory	811,000
		Accounts payable
2	Oct 15, Year 4	Accounts receivable	811,000
		Sales
3	Dec 1, Year 4	Exchange gains and losses	2,511,000
		Cash
4	Dec 1, Year 4	Forward contract
		Forward contract
5	Dec 15, Year 4		811,000
		Accounts payable
6	Dec 15, Year 4	No journal entry required
		Notes payable
7	Dec 15, Year 4	Forward contract	2,511,000
		Receivable from bank
8	Dec 15, Year 4	Bills payable	811,000
		Accounts payable
9	Dec 31, Year 4	Exchange gains and losses
		Accounts receivable
10	Dec 31, Year 4	Exchange gains and losses

(b) Prepare the December 31, Year 4, balance sheet presentation of the receivable from the Argentinean customer, and the accounts associated with the forward contract. (Omit $ sign in your response.)

Hull Manufacturing Corp. Balance Sheet as at December 31, Year 4
Assets
Account receivable	$
Forward contract	$