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Canada Corp.sells raw lumber to a number of countries around the world.On December 1,2013 the company shipped some lumber to a client in Japan.The selling price was established at 500,000 Yen with payment to be received on March 1,2014.
On December 3,2013 the company entered into a hedge with a Canadian Bank at the 90 day forward rate of 1Yen=$1.185CDN.
Canada Corp received the payment from its Japanese client on March 1,2014.Canada Corp's year end is on December 31.
Selected spot rates were as follows:
-Prepare the journal entries to record the receipt of the 500,000 Yen on March 1,2014,assuming that Canada Corp did not enter into a hedge transaction in December 2013.

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The following information pertains to questions 
Canada Corp.sells raw lumber to a number of countries around the world.On December 1,2013 the company shipped some lumber to a client in Japan.The selling price was established at 500,000 Yen with payment to be received on March 1,2014.
On December 3,2013 the company entered into a hedge with a Canadian Bank at the 90 day forward rate of 1Yen=$1.185CDN.
Canada Corp received the payment from its Japanese client on March 1,2014.Canada Corp's year end is on December 31.
Selected spot rates were as follows: 
-Prepare the journal entries to record the receipt of the 500,000 Yen on March 1,2014,assuming that Canada Corp did not enter into a hedge transaction in December 2013.

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The Answer of The following information pertains to questions 
Canada Corp.sells raw lumber to a number of countries around the world.On December 1,2013 the company shipped some lumber to a client in Japan.The selling price was established at 500,000 Yen with payment to be received on March 1,2014.
On December 3,2013 the company entered into a hedge with a Canadian Bank at the 90 day forward rate of 1Yen=$1.185CDN.
Canada Corp received the payment from its Japanese client on March 1,2014.Canada Corp's year end is on December 31.
Selected spot rates were as follows: 
-Prepare the journal entries to record the receipt of the 500,000 Yen on March 1,2014,assuming that Canada Corp did not enter into a hedge transaction in December 2013.

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