Maplehauff Inc Prepare Any and All Journal Entries Arising from This Transaction

Essay

Maplehauff Inc. sells lumber to a number of clients around the world. On December 1, 2019 the company shipped some lumber to a client in the U.S. The selling price was established at US$600,000 with payment to be received on March 1, 2020. On December 3, 2019 the company entered into a hedge with a Canadian Bank at the 90 day forward rate of US$1 = CDN$1.275. The forward contract was designated as a cash flow hedge of the amount due from the American customer. Maplehauff uses the net method to record the forward contract.
Maplehauff Inc. received the payment from its American client on March 1, 2020. The company's year-end is on December 31. The two-month forward rate for US dollars was CDN$1.255 on that date.
Selected spot rates were as follows:
$\begin{array}{|l|l|}\hline \text { December } 1,2019: & \text { US } \$ 1=\text { CDN } \$ 1.2355 \\\hline \text { December } 3,2019: & \text { US } \$ 1=\text { CDN } \$ 1.2355 \\\hline \text { December } 31,2019 & \text { US } \$ 1=\mathrm{CDN} \$ 1.2455 \\\hline \text { March } 1,2020: & \mathrm{US} \$ 1=\mathrm{CDN} \$ 1.2480\\\hline\end{array}$ Prepare any and all journal entries arising from this transaction.