REPLACE PART B with the following requirement: Prepare a partial statement of financial position at December 31, year 5 which shows accounts receivable and the forward contract. Use a proper three-line title for your partial statement.

Hamilton Importing Corp. (HIC) imports goods from countries around the world for sale in Canada. On December 1, Year 3, HIC purchased 11,300 watches from a foreign wholesaler for DM613,000 when the spot rate was DM1 =$0.754. The invoice called for payment to be made on April 1, Year 4. On December 3, Year 3, HIC entered into a forward contract with the Royal Bank at the 120 -day forward rate of DM1 =$0.794. Hedge accounting is not applied. The fiscal year-end of HIC is December 31. On this date, the spot rate was DM1 =$0.770 and the 90 -day forward rate was DM1 =$0.799. The payment to the foreign supplier was made on April 1, Year 4 , when the spot rate was DM1 =$0.815. Required (a) Prepare the journal entries to record (i) the purchase and the forward contract, (ii) any adjustments required on December 31 , and (iii) the payment in Year 4