Chan Can Corporation (CCC), a Canadian corporation, engaged in the following transactions in late 2004 and early 2005:

Required:
Prepare journal entries for these transactions, including any adjusting entries needed at the December 31, 2004, year-end.

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December 2 December 2 December 20 January 31 Purchased sheet aluminum from a U.S. subsidiary of a Canadian alu- minum company for US$160,000, payable in 60 days. January 31 February 18 Acquired a forward contract to receive US$160,000 in 60 days, as a hedge of the account payable. The forward contract rate was C$1.40. Sold large cans to a Buffalo canner for US$200,000, due in 60 days. Received US$160,000 on the forward contract; paid US$160,000 to the aluminum company. Received US$200,000 from the Buffalo canner. February 18 Spot rates for the U.S. dollar were as follows: December 2 December 20 December 31 $1.37 $1.42 $1.44 $1.50 $1.47