On June 1, 2010, the Hansen Company purchased ten $1,000 Francisco Company bonds at par and classified
Question:
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?
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1 June 1 2010 Investment in HeldtoMaturity Debt Securities 10000 Cash 10000 2011 Realized Loss ...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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