PB-17 (40 minutes, hard) Muskoka Furniture Inc. (Muskoka) can also import custom pine furniture, but it must be ordered several months in advance as it is only manufactured after a specific request is made Assume that on November 1, 20X4, Muskoka orders custom bedroom furniture from a sup plier in the United States for US$2,000. The invoice calls for delivery and payment to be made on February 28, 20X5 On November 1, 20X4, Muskoka entered into a forward contract with a bank to hedge the commitment by agreeing to buy US$2,000 on February 28, 20X5, at a rate of US$1 C$1.150. Muskoka's year-end is December 31. On February 28, 20X5, Muskoka received the furniture, settled the forward contract with the bank, and paid the US supplier Spot rates were as follows: November 1, 20X4 December 31, 20X4 February 28, 20X5 US$1 = C$1.140 US$1 C$1.160 US$1 C$1.190 The February 28, 20X5, forward rate on December 31, 20X4, was US$1 = C$1.165 Required a. b. Prepare journal entries to record all of the transactions for 20X4 and 20X5, including any adjustments required on December 31, 20X4, assuming that Muskoka does not use hedge accounting. Show your supporting calculations. Assume that Muskoka Furniture Inc designates the hedge as a fair-value hedge of a commitment, documents the relationship, and assesses the hedge as effective. Prepare journal entries to record all of the transactions for 20X4 and 20X5, including any adjustments required on December 31, 20X4, assuming that Muskoka can use hedge accounting Assume that Muskoka Furniture Inc. designates the hedge as a cash-flow hedge of a commitment, documents the relationship, and assesses the hedge as effective. Prepare journal entries to record all of the transactions for 20X4 and 20X5, including any adjust- ments required on December 31, 20X4