on July $1,2022,$ Cullen Corp., a publicly traded tea wholesaler, placed

an order with its supplier for five tonnes of matcha tea for delivery on

November $30,2022.$

Payment will be due on delivery at the spot $($current market$)$ price on

that date.

Or July $1,$ the spot price for one ton of matcha tea is $$2,100$ and the

future $($forward$)$ price for November $30,2022$ delivery is $$2,000.$ Cullen

entered into a forward contract for five tonnes of matcha tea at $$2,000$

per tonne for November $30,2022$ delivery. The forward contract calls

for a net cash settlement and was priced so no payment was required

by Cullen when it was signed.

Cullen designated the contract as a cash flow hedge.

Cullen's quarter end for reporting to the securities commission on

September $30,$

On that date the fair value of the futures contract had increased

to $$1,750.$

On November $30,2022,$ when the spot price was $$2,490$ and the fair

value of the futures contract was $$2,450,$ Cullen took delivery of the

matcha tea, paid its supplier and settled the forward contract.

On December $20,2022,$ Cullen sold four tonnes of matcha tea from the

November delivery to David's Ltd for $$2,600$ per tonne cash. The

remaining inventory was unsold at December $31.$

Assume all prices are in Canadian dollars $($CAD$).$

Required:

Prepare all journal entries for the following dates in $2022$: July $1,$

September $30,$ November $30$ and December $20.$

Show how the account balances for the transactions you

recorded in $"$a$"$ would be reflected in Cullen's year$-$end $($i$)$

Statement of Income and Comprehensive Income and $($ii$)$ Statement

of Financial Position filed for December $31,2022$

with the Securities Commission in the jurisdiction in which its shares

are listed.