On August $1,$ Year $3,$ Carleton Ltd$.$ ordered machinery from a supplier in Hong Kong for HK$$440,000.$ The machinery was delivered on

October $1,$ Year $3,$ with terms requiring payment in full by December $31,$ Year $3.$ On August $2,$ Year $3,$ Carleton entered a forward

contract to purchase HK $$440,000$ on December $31,$ Year $3,$ at a rate of $$0\mathrm{.}238.$ On December $31,$ Year $3,$ Carleton settled the forward

contract and paid the supplier.

Exchange rates were as follows:

# For contracts expiring on December $31,$ Year $3.$

$($c$)$ Assume that hedge accounting was not applied. Prepare the journal entries for Year $3$ to record all the activity described above and

prepare a summary journal entry for the combined effect of all entries. $($In cases where no entry is required, please select the option

$"$No journal entry required" for your answer to grade correctly. Leave no cells blank $-$ be certain to enter $"$O$"$ wherever required.$)$

Journal entry worksheet

$1$ Record the contact to purchase machinery aug $1$ year $4$

$2$ record the forward contract aug $2$ year $3$

$3$ record the purchase of machinery oct $1$ year $3$

$4$ revalue forward contract at Faire value oct $1$ year$3$

$5$ revalue forward contract at fair value dec $31$ year $3$

$6$ revalue account payable at Faire value dec $31$ year $3$

$7$ Record the cash received from bank dec $31$ year $3$

$8$ Record payment of account payable dec $31$ year $3$

$9$ summary journal entry

Recored the contract to purchase machinery.

Note: Enter debits before credits.