Question: On June 1 2010 the Hansen Company purchased ten 1 000

On June 1, 2010, the Hansen Company purchased ten $1,000 Francisco Company bonds at par and classified them as held to maturity. In 2011, the Francisco Company experienced financial difficulties and Hansen reduced the carrying value of each bond by 40%. In 2012, the Francisco Company improved its financial condition and Hansen believed that each bond was now worth $900 based on current market yields.

Required
1. Prepare the journal entries for Hansen Company to record the above events under U.S. GAAP.
2. How would your answers change if the company uses IFRS?


View Solution:


Sale on SolutionInn
Sales0
Views165
Comments
  • CreatedDecember 09, 2013
  • Files Included
Post your question
5000