On 1 March 2022, Koala Ltd, an Australian entity, purchased goods (as inventory) from NY Corp, a US supplier. The goods were shipped on 1 March 2022, at which time control of the assets were transferred to Koala Ltd. The total contract price was US$1 000 000 and the full amount was due for payment on 1 August 2022. Because of concerns about movements in foreign exchange rates, on 1 May 2022, Koala Ltd entered into a forward rate contract on US dollars with a foreign exchange broker to purchase US$1 000 000 on 1 August 2022 at a forward rate of $A1.00=US$0.67. Assume that the hedge satisfied the hedge accounting requirements of AASB 9, it was 100% effective and that Koala Ltd had designated the hedging arrangement as a fair value hedge. The financial year end of Koala Ltd is 30 June. The following exchange rate information is applicable:

1 March 2022 1 May 2022 30 June 2022 1 August 2022

REQUIRED:

Spot rate

A$1.00 = US$0.75 A$1.00 = US$0.70 A$1.00 = US$0.65 A$1.00 = US$0.60

Forward rate for delivery of US$1 000 000 on 1 August 2022

A$1.00 = US$0.72 A$1.00 = US$0.67 A$1.00 = US$0.63 A$1.00 = US$0.60

Prepare the general journal entries to record these transactions at various dates in Koala Ltds books in accordance with the requirements of AASB 9 Financial Instruments.