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Hull Manufacturing Corp. (HMC), a Canadian company, manufactures Instruments used to measure the moisture content of barley and wheat. The company sells primarily to the domestic market, but in Year 3 began purchasing semi-finished components from a supplier in Romania. The management of HMC is concerned about the possible adverse effects of foreign exchange fluctuations. To deal with this matter, all of HMC's foreign currency-denominated receivables and payables are hedged with contracts with the company's bank. The year-end of HMC is December 31 The following transactions occurred late in Year 4: On October 15, Year 4, HMC purchased components from its Romanian supplier for 810,000 Romanian leus (RL). On the same day, HMC entered into a forward contract for RON810,000 at the 60-day forward rate of RON1 = $0.418. The Romanian supplier was paid in full on December 15, Year 4. On December 1, Year 4. HMC made a shipment to a customer in Argentina. The selling price was 2.510,000 Argentinean pesos (ARS), with payment to be received on January 31, Year 5. HMC immediately entered into a forward contract for ARS2,510,000 at the two-month forward rate of ARS1 - $0.236. During this period, the exchange rates were as follows: Forward Rates October 15, Year 4 December 1, Year December 15, Year December 31, Year 4 Spot Rates RONI 50.405 10.259 RONI 50.397 ARSI 30.241 ARS - 50.232 Hedge accounting is not adopted there are 10 Journal entries record to worksheet yr 4 a) Journal entries, record: 1) purchase of Inventory 2) forward contract entertered for Romanian leus 3) forward contract entered for Argentinean pesos 4) forward contract 5) accounts payable at fair value 6) forward contract at fair value 7) the receipt from bank 8) payment to accounts payable 9) accounts recievable at fair value 10) forward contract at fair value (b) Prepare the December 31, Year 4 balance sheet presentation of the receivable from the Argentinean customer, and the accounts associated with the forward contract (Omit $ sign in your response.) Hull Manufacturing Corp. Balance Sheet as at December 31, Year Ansete Account receivable Forward contract - Q +

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