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 31Year 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

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.)

No	Date	General Journal	Debit	Credit
1	Oct 15, Year 4	Inventory	811,000
		Purchase		811,000
2	Oct 15, Year 4	Forward contract	811,000
				811,000
3	Dec 1, Year 4	Forward contract	2,511,000
				2,511,000
4	Dec 1, Year 4	Forward contract
		No journal entry required
5	Dec 15, Year 4	Forward contract
		Accounts payable
6	Dec 15, Year 4	Forward contract
		No journal entry required
7	Dec 15, Year 4	Forward contract
		Receivable from bank
8	Dec 15, Year 4	Bills payable
		Accounts payable