On December 15, 2019, Frosty Exports Ltd. shipped a large order to a customer in Cancun, Mexico (per the terms of the sale, title to the product passed to the customer when shipped from Calgary). The currency of Mexico was the Mexican Peso (MXN). The total order was MXN 750,000, payable to Frosty on January 15, 2020. Immediately upon shipping the order, Frosty entered into a forwarding contract with its bank to sell MXN 750,000 on January 15, the day that Frosty expected to receive payment from its customer in Cancun. Frosty's controller chose to use hedge accounting for this transaction, and the company's year-end was December 31. Foreign exchange rates were as follows:

Spot Rate Forward Rate

December 15 1 MXN = CAD 0.0641 1 MXN = CAD 0.0655

December 31 1 MXN = CAD 0.0652 1 MXN = CAD 0.0645

January 15 1 MXN = CAD 0.0683 1 MXN = CAD 0.0683

REQUIRED: the journal entries required to record the fair value hedge on the books of Frosty Exports Ltd.