Maplehauff Inc -Prepare the Journal Entries to Record the Receipt of the the World

Essay

Maplehauff Inc. sells lumber to a number of clients around the world. On December 1, 2015 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, 2016. On December 3, 2015 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 fair value hedge of the amount due from the American customer.
Maplehauff Inc. received the payment from its American client on March 1, 2016. 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:
$$\begin{array} { | l | l | } \hline \text { December 1, 2015: } & \text { US } \$ 1 = \operatorname { CDN } \$ 1.2356 \\\hline \text { December } 3,2015 : & \text { US } \$ 1 = \operatorname { CDN } \$ 1.2365 \\\hline \text { December } 31,2015 : & \text { US } \$ 1 = \operatorname { CDN } \$ 1.2456 \\\hline \text { March 1, 2016: } & \text { US } \$ 1 = \operatorname { CDN } \$ 1.2480 \\\hline\end{array}$$
-Prepare the journal entries to record the receipt of the US$600,000 on March 1, 2016, assuming that Maplehauff Inc did not enter into a hedge transaction in December 2015.