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 808,000 Romanian leus (RL). On the same day, HMC entered into a forward contract for RON808,000 at the 60-day forward rate of RON1 = $0.416. 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 2,508,000 Argentinean pesos (ARS), with payment to be received on January 31, Year 5. HMC immediately entered into a forward contract for ARS2,508,000 at the two-month forward rate of ARS1 = $0.234.

During this period, the exchange rates were as follows:

Spot Rates Forward Rates October 15, Year 4 RON1 = $0.403 December 1, Year 4 ARS1 = 0.257 December 15, Year 4 RON1 = $0.395 December 31, Year 4 ARS1 = $0.241 ARS1 = $0.230 Hedge accounting is not adopted. Required: (a) 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.)