Note: Some problems use direct exchange rate quotations; others use indirect quotations. Problem 10-1 LO1 2, 4, 8 Manitoba Exporters Inc. (MEID sells Inuit carvings to countries throughout the world. On Decem- ber 1, Year 5, MEI sold 10,000 carvings to a wholesaler in a foreign country at a total cost of 600,000 foreign currency units (FCs) when the spot rate was FC1 S0.741. The invoice required the foreign wholesaler to remit by April 1, Year 6. On December 3, Year 5, MEI entered into a forward contract with the Royal Bank at the 120-day forward rate of FC1-$0.781 and the spot rate was still FC1- $0.741. Hedge accounting is not applied. The fiscal year-end of MEI is December 31, and on this date the spot rate was FC1 $0.757 and the forward rate was FC1 -S0.791. The payment from the foreign customer was received on April 1, Year 6, when the spot rate was FC1 = $0.802. Required (a) Prepare the journal entries to record (i) the sale and the forward contract, (ii) any adjustments required on December 31, and (iii) the cash received in Year 6. (b) Prepare a partial balance sheet of MEI on December 31, Year 5, which shows the presentation of the receivable and the accounts associated with the forward contract. (c) Now aseu Note: Some problems use direct exchange rate quotations; others use indirect quotations. Problem 10-1 LO1 2, 4, 8 Manitoba Exporters Inc. (MEID sells Inuit carvings to countries throughout the world. On Decem- ber 1, Year 5, MEI sold 10,000 carvings to a wholesaler in a foreign country at a total cost of 600,000 foreign currency units (FCs) when the spot rate was FC1 S0.741. The invoice required the foreign wholesaler to remit by April 1, Year 6. On December 3, Year 5, MEI entered into a forward contract with the Royal Bank at the 120-day forward rate of FC1-$0.781 and the spot rate was still FC1- $0.741. Hedge accounting is not applied. The fiscal year-end of MEI is December 31, and on this date the spot rate was FC1 $0.757 and the forward rate was FC1 -S0.791. The payment from the foreign customer was received on April 1, Year 6, when the spot rate was FC1 = $0.802. Required (a) Prepare the journal entries to record (i) the sale and the forward contract, (ii) any adjustments required on December 31, and (iii) the cash received in Year 6. (b) Prepare a partial balance sheet of MEI on December 31, Year 5, which shows the presentation of the receivable and the accounts associated with the forward contract. (c) Now aseu