On September 1, Exotic Imports Inc. (EII) ordered a large supply of product from a supplier in Amman, Jordan. The currency of Jordan is the Jordanian Dinar (JOD). The total order was JOD 550,000, payable to the supplier 30 days after delivery of the product to EII's warehouse in Calgary. As per the terms of the contract, title to the product would transfer to EII Imports upon delivery to its warehouse in Calgary (scheduled for October 1). Immediately upon placing the order on September 1, EII entered into a forwarding contract with its bank to purchase JOD 550,000 on October 31, the day that EII expects to pay its supplier. The product was delivered as expected on October 1. EII's controller chose to use hedge accounting for this transaction, designating the hedge as a cash flow hedge of the foreign liability. The company's year-end was September 30. Foreign exchange rates were as follows: Date Spot Rate Forward Rate September 1 September 30 October 1 October 31 1 JOD = CAD 1.7234 1 JOD = CAD 1.7225 1 JOD = CAD 1.7915 1 JOD = CAD 1.8600 1 JOD = CAD 1.8065 1 JOD = CAD 1.7421 1 JOD = CAD 1.8330 1 JOD = CAD 1.8600 REQUIRED: Prepare all the journal entries required to record the cash flow hedge on the books of Exotic Imports Inc. Note: Round all currency amounts to the nearest whole amount (i.e. no decimals). Carry all exchange rates to 4 decimal places (e.g. 0.1234) On September 1, Exotic Imports Inc. (EII) ordered a large supply of product from a supplier in Amman, Jordan. The currency of Jordan is the Jordanian Dinar (JOD). The total order was JOD 550,000, payable to the supplier 30 days after delivery of the product to EII's warehouse in Calgary. As per the terms of the contract, title to the product would transfer to EII Imports upon delivery to its warehouse in Calgary (scheduled for October 1). Immediately upon placing the order on September 1, EII entered into a forwarding contract with its bank to purchase JOD 550,000 on October 31, the day that EII expects to pay its supplier. The product was delivered as expected on October 1. EII's controller chose to use hedge accounting for this transaction, designating the hedge as a cash flow hedge of the foreign liability. The company's year-end was September 30. Foreign exchange rates were as follows: Date Spot Rate Forward Rate September 1 September 30 October 1 October 31 1 JOD = CAD 1.7234 1 JOD = CAD 1.7225 1 JOD = CAD 1.7915 1 JOD = CAD 1.8600 1 JOD = CAD 1.8065 1 JOD = CAD 1.7421 1 JOD = CAD 1.8330 1 JOD = CAD 1.8600 REQUIRED: Prepare all the journal entries required to record the cash flow hedge on the books of Exotic Imports Inc. Note: Round all currency amounts to the nearest whole amount (i.e. no decimals). Carry all exchange rates to 4 decimal places (e.g. 0.1234)