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 HMC's foreign-currency-denominated receivables and payables are hedged with contracts with the company's 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 815,000 Romanian leus (RL). On the same day, HMC entered into a forward contract for RON815,000 at the 60-day forward rate of RON1 = $0.423. 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 2,515,000 Argentinean pesos (ARS), with payment to be received on January 31, Year 5. HMC immediately entered into a forward contract for ARS2,515,000 at the two-month forward rate of ARS1 = $0.241. During this period, the exchange rates were as follows: October 15, Year 4 December 1, Year 4 December 15, Year 4 December 31, Year 4 Spot Rates RON1 = $0.410 ARS1 = 0.264 RON1 = $0.402 Forward Rates ARS 1 = $0.248 ARS1 = $0.237 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.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the purchase of inventory. Note: Enter debits before credits. General Journal Debit Credit 334,150 334,150 Date Oct 15, Year Inventory 4 Accounts payable > 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.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 10 > Record the forward contract entered for Romanian leus Note: Enter debits before credits. Date Oct 15, Year 4 General Journal Debit Credit Receivable from bank 344,745 Payable to bank 344,745 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.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 10 > Record the forward contract entered for Argentinean pesos Note: Enter debits before credits. Date Dec 1, Year 4 General Journal Debit Credit Accounts receivable 663,960 Sales 663,960 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.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 10 Record the forward contact. Note: Enter debits before credits. Date General Journal Debit Credit Dec 1, Year 4 Receivable from bank 606,115 Payable to bank 606,115 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.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 10 > Revalue accounts payable at fair value. Note: Enter debits before credits. Date General Journal Debit Credit Dec 15, Year 4 Accounts payable 6,520 Exchange gains and losses 6,520 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.) View transaction list Journal entry worksheet < 1 2 3 4 5 Revalue forward contract at fair value. Note: Enter debits before credits. 60 7 8 9 10 Date General Journal Debit Credit Dec 15, Year 4 Exchange gains and losses 17,115 Receivable from bank 17,115 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.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Record the receipt from bank. Note: Enter debits before credits. Date Dec 15, Year 4 General Journal Debit Credit Payable to bank 344,745 Cash 344,745 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.) View transaction list Journal entry worksheet 1 2 3 5 6 7 9 10 > Record the payment to accounts payable. Note: Enter debits before credits. General Journal Debit Credit 327,630 327,630 Date Dec 15, Year 4 Cash Receivable from bank 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.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 10 > Revalue accounts receivable at fair value. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, Year 4 Accounts payable 327,630 Cash 327,630 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.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 Revalue forward contract at fair value. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, Year 4 Exchange gains and losses 40,240 Accounts receivable 40,240 10 10 > (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.) Assets Hull Manufacturing Corp. Balance Sheet as at December 31, Year 4 Account receivable Forward contract es es 606115 $ 10060