Maplehauff Inc. sells lumber to a number of clients around the world. On December 1, 2019 the company entered into a contract to deliver lumber to a client in the U.S. The selling price was established at US$600,000 with delivery to occur and payment to be received on March 1, 2020. On December 3, 2019 the company entered into a hedge with a Canadian Bank at the 90 day forward rate of US$1 = CDN$1.275. The forward contract was designated as a cash flow hedge of the amount due from the American customer. Maplehauff uses the net method to record the forward contract.

Maplehauff Inc. delivered the lumber and received the payment from its American client on March 1, 2020. The company's year-end is on December 31. The two-month forward rate for US dollars was CDN$1.255 on that date.

Selected spot rates were as follows:

December 1, 2019: US$1 = CDN$1.2355

December 3, 2019: US$1 = CDN$1.2355

December 31, 2019: US$1 = CDN$1.2455

March 1, 2020: US$1 = CDN$1.2480

I'm looking for the following journal entries assuming that the forward contract is designated as a cash flow hedge. Show all calculations required.

December 31, 2019