On January 1, 2022, Dymaxium Inc. a Canadian company, sold Alberta beef to a foreign company for FC$200,000, with payment due on March 1, 2008. ON the same date, Dymaxium entered into a forward contract with the bank to sell the foreign currency (FC) it will receive on March 1, 2022 at a rate of FC1=C$1.16. The forward contract was designed as a fair value hedge of the FC receivable.

On March 1, 2022, Dymaxium received the payment from the foreign company and settled the forward contract with the bank.

Spot exchange rates were as follows:

January 1, 2022FC1 = C$1.18

March 1, 2022FC1 = C$1.19

Required

Prepare journal entries to record the above transactions