(ii) any adjustments required on December 31 (iii) the cash received and settlement of the contracts in Year 6 (b) Prepare the journal entries for the same items as in part (a) assuming that MEl designates the forward contract as a fair value hedge. (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.) (i) The sale and the forward contract on December 1 and 3, Year 5 (ii) any adjustments required on December 31 Manitoba Exporters Inc. (MEI) sells Inuit carvings to countries throughout the world. On December 1, Year 5, MEl sold 11,500 carvings to a wholesaler in a foreign country at a selling price of 736,000 foreign currency units (FC) when the spot rate was FC1= \$0.811. The invoice required the foreign wholesaler to remit by April 1, Year 6. On December 3, Year 5, MEl entered into a forward contract with the Royal Bank to sell FC736,000 at the 120-day forward rate of FC1 =$0.851 when the spot rate was still FC1=$0.811. The fiscal year-end of MEI is December 31 , and on this date the spot rate was FC1 =$0.827 and the forward rate was FC1 $0.861. The payment from the foreign customer was received on April 1, Year 6, when the spot rate was FC1 =$0.872. Assume that MEl uses hedge accounting. Also, assume that the forward element and spot elements on the forward contract are accounted for separately. Required: (a) Prepare the journal entries for the below items assuming that MEI designates the forward contract as a cash flow hedge: (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.) (i) The sale and the forward contract on December 1 and 3, Year 5 (iii) the cash received and settlement of the contracts in Year 6