PartyCo. entered into a firm commitment on October $1,2021$ to buy party supplies from a supplier in China for $150,000,000$ Chinese Yuan. The goods are to arrive on March $31,2022$ and to be paid in Chinese Yuan on that date. To hedge foreign currency risk, PartyCo. entered into a forward contract on October $1,2021$ that must be settled on March $31,2022.$ PartyCo. has a December $31$ year end. The forward contract qualifies as a fair value hedge. The following are exchange rates for one Chinese Yuan:

Date Spot Rate Forward Rate

October $1,2021$ $$0\mathrm{.}14$ $$0\mathrm{.}18$

December $31,2021$ $$0\mathrm{.}15$ $$0\mathrm{.}19$

March $31,2022$ $$0\mathrm{.}16$ $$0\mathrm{.}16$

a$.$ Prepare the journal entries for the hedged item and the hedging instrument from October $1$ to March $31.$

b$.$ What is reported on the balance sheet at December $31,2021$ related to this hedging arrangement? List the accounts, identify as assets or liabilities, and provide the balances.

c$.$ What is the total cash paid for inventory?