muskoka furniture inc muskoka can also import custom pine furniture but it must be ordered several months in advance as it is only manufactured after a

Required
1. Prepare journal entries to record all of the transactions for 20X4 and 20X5, including any adjustments required on December 31, 20X4, assuming that Muskoka does not use hedge accounting. Show your supporting calculations.
2. Assume that Muskoka Furniture Inc. designates the hedge as a fair-value hedge of a commitment, documents the relationship, and assesses the hedge as effective. Prepare journal entries to record all of the transactions for 20X4 and 20X5, including any adjustments required on December 31, 20X4, assuming that Muskoka can use hedge accounting.
3. Assume that Muskoka Furniture Inc. designates the hedge as a cash-flow hedge of a commitment, documents the relationship and assesses the hedge as effective. Prepare journal entries to record all of the transactions for 20X4 and 20X5, including any adjustments required on December 31, 20X4.

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