On 1 June 2023 Oz Limited an Australian company, enters a non-cancellable purchase contract for US $450,000 worth of inventory with a US supplier. The goods will be purchased FOB New York. The goods are shipped on 30 September 2023 and are paid for on 31 October 2023. Oz Limited also entered into a forward exchange contract for US\$450,000 on 1 June 2023 with the US Bank in which the US Bank agrees to supply Oz Limited with US\$450,000 on 31 October 2023. Relevant exchange rates are as follows. Date Forward rate 1 June 2023 Spot rate: A$1= US$0.73 Forward rate: A$1= US$0.73 30 June 2023 Spot rate: A$1= US$0.74 Forward rate: A$1= US$0.71 30 September 2023 Spot rate: A$1= US$0.70 Forward rate: A$1= US$0.67 31 October 2023 Spot rate: A$1= US$0.72 Forward rate: A$1= US$0.72 Assume that the hedging arrangement satisfies the requirements for hedge accounting as stipulated in AASB 9 'Financial Instruments', and the management of Oz Ltd adopts cash flow hedge accounting. Required: Provide necessary journal entries to account for the 'hedge item' and the 'hedge instrument'. [Narrations are not required]

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