Question $2$ Smart Machines Ltd$.($Smart$)$ builds computers and imports a key electronic

component for its manufacturing process. The company recently switched suppliers and placed its

first order with its new supplier in Singapore on July $2.$ The order totalled $$850,000$ Singapore

dollars $($SGD$$)$ when the exchange rate was SGD$$1=$ $$1\mathrm{.}171$ Cdn$.$ On July $25$ the parts were

received. Payment is due on October $31.$ On August $14,$ Smart's accountant noticed the exchange

rate had moved unfavorably and recommended the company consider a forward contract to hedge

the payable. On August $15,$ Smart's management entered into a forward contract settling on

October $31$ to purchase SGD$$850,000.$ The company's fiscal year end is September $30.$ Assume

the hedge meets the requirements to be designated a fair value hedge.

Required: Prepare all the journal entries required for the transactions.