The Answer is Maplehauff Inc. Balance Sheet as at December 31, 2019 Assets Accounts Receivable [US $ 600 , 000 × 1.2455 ] $ 747 , 300 Forward contract $ 12 , 000 \begin{array}{|l|r|}\hline \text { Assets } & \\\hline \text { Accounts Receivable [US } \$ 600,000 \times 1.2455] & \$ 747,300 \\\hline \text { Forward contract } & \$ 12,000 \\\hline\end{array} Assets Accounts Receivable [US $600 , 000 × 1.2455 ] Forward contract $747 , 300 $12 , 000

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Maplehauff Inc

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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

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