Canada Corp The Two-Month Forward Rate on December 31, 2016 Was 1Yen

Essay

Canada Corp. sells raw lumber to a number of countries around the world. On December 1, 2016 the company shipped some lumber to a client in Japan. The selling price was established at 500,000 Yen with payment to be received on March 1, 2017.
On December 3, 2016 the company entered into a hedge with a Canadian Bank at the 90 day forward rate of 1 Yen = CDN$1.185. The forward contract was designated as a fair value hedge of the receivable from the Japanese customer.
Canada Corp received the payment from its Japanese client on March 1, 2017. Canada Corp's year end is on December 31.
Selected spot rates were as follows: $$\begin{array} { | l | l | } \hline \text { December 1, 2016: } & 1 \text { Yen } = \text { CDN\$1.156 } \\\hline \text { December 3, 2016: } & 1 \text { Yen } = \text { CDN\$1.156 } \\\hline \text { December 31, 2016:} & 1 \text { Yen } = \text { CDN } \$ 1.1626 \\\hline \text { March 1, 2017: } & 1 \text { Yen } = \text { CDN } \$ 1.1750 \\\hline\end{array}$$ The two-month forward rate on December 31, 2016 was 1Yen = CDN$1.1800.
-Prepare any and all journal entries arising from this transaction.