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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 forelgn wholesaler for DM613,000 when the spot rate was DM1 = $0.754. The Involce 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 = $0.816. Required: (a) Prepare the journal entries required In Year 3 and Year 4, assuming that hedge accounting is not applied. (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 "0" wherever required.) Date December 1, Year 3 Debit Credit General Dournal (Click to select) (Click to select) Record the purchase of Inventory. December 3, Year 3 [Click to select Tellick to select) V Record the forward contract. December 31, Year 3 (Click to select) Click to select) Revalue accounts payable at fair value. [Click to select) V (Click to select) Revalue forward contract at fair value April 1, Year 4 Click to select Click to select Revalue accounts payable at fair value ICCHIO to select Click to select Revalue forward contractat tair value Click to select Click to select IClick to select V Record the receipt ut cash from bank. Click to seleco Click to select V (b) Propare a partial statement of financial position as at December 31, Year 3, which shows accounts payable and the forward contract. (Omit S sign in your response.) Hamilton Importing Corp. Partial Statement of Financial Position at December 31, Year 3 Assets (Click to select) Liabilities (Click to select) V Sk mt (c) Prepare one journal entry to summarize the combined effect of all entries in part (a). (In cases where no entry is required, please select the option "No joumal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required.) nes 7 Sunary Journal entry General Journal Debit Credit (Click to select) V Click to select) [Click to select Record the summary of purchase of Inventory and forward contract. (d) Prepare the Journal entries required in Year 3 and Year 4, assuming that the forward contract is designated as a fair value hedge and is segregated between the spot element and forward element 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 "0" wherever required.) Date General Journal Debit Credit December 1, Year Click to select) Ick to select Record the purchase of Inventory. December 3, Year) Click to select Click to select Record forward contract December 31 Year 3 rolek to select chick to 10 Ravalu out payabia fair value Tick to seleon TUKI selec Click to see Revalue forward contactar al Click to select) Revalue accounts payable at fair value. (Click to select) (Click to select) (Click to select) V Revalue forward contract at fair value. (Click to select) V (Click to select) Record amortization loss from premium on forward contract over 4 months. April 1, Year 4 (Click to select) V (Click to select) Revalue accounts payable at fair value. Click to select) V (Click to select) V (Click to select) Revalue forward contract al fair value. (Click to select) [Click to select) Record amortization loss from premium on forward contract over 4 months Click to select) Click to select) v Click to select) Record the receipt of cash from bank. (Click to select Click to select V Record the cash paid for purchase of inventory (e) Prepare one journal entry to summarize the combined effect of all entries in partid). (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 "0" wherever required.) General Journal Debit Credit Surinary Journal entry (Click to select Click to select Lollick to seleco Pracord

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