Refer to the situation described in P 14-16. In P 14-16. Cupola Fan Corporation issued 10%, $400,000,

Question:

Refer to the situation described in P 14-16.
In P 14-16.
Cupola Fan issued 10%, $400,000, 10-year bonds for $385,000 on June 30, 2018. Debt issue costs were $1,500. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2019), the exercised its call privilege and retired the bonds for $395,000. The uses the straight-line method both to determine interest expense and to amortize debt issue costs.
Required:
How might your solution for the issuer of the bonds differ if Cupola prepares its according to International Financial Reporting Standards? Include any appropriate journal entries in your response.
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