On August $1,$ Year $3,$ Carleton Ltd$.$ ordered machinery from a supplier in Hong Kong for HK$$330,000.$ The machinery was delivered on October $1,$ Year $3,$ with terms requiring payment in full by December $31,$ Year $3.$ On August $2,$ Year $3,$ Carleton entered a forward contract to purchase HK$$330,000$ on December $31,$ Year $3,$ at a rate of $$0\mathrm{.}207.$ On December $31,$ Year $3,$ Carleton settled the forward contract and paid the supplier. $$ Exchange rates were as follows: $$Spot RatesForward Rates#August $1$ and $2,$ Year $3$HK$$1=$ C$$0\mathrm{.}202$HK$$1=$ C$$0\mathrm{.}207$October $1,$ Year $3$HK$$1=$ C$$0\mathrm{.}206$HK$$1=$ C$$0\mathrm{.}210$December $31,$ Year $3$HK$$1=$ C$$0\mathrm{.}211$HK$$1=$ C$$0\mathrm{.}211$ #For contracts expiring on December $31,$ Year $3.$ Required: $($a$)$ Assume that the forward contract was designated as a cash flow hedge of the firm commitment to purchase the machinery, and that the balance in accumulated other comprehensive income on October $1$ was transferred to the machinery account when the machinery was delivered. 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. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$Recored the contract to purchase machinery. $2$ Record the forward contract. $3$ Record the purchase of machinery. $4$ Revalue forward contract at fair value. $5$ Transfer accumulated OCI to machinery. $6$ Revalue forward contract at fair value. $7$ Revalue accounts payable at fair value. $8$ Transfer accumulated OCI to exchange gains$/$losses$.9$ Record the cash received frombank. $10$ Record payment of accounts payable. $11$ Record summary entry for all entries combined.