Hanson Incorporated issued $1 million of 7%, 10-year bonds on July 1, 2013, at face value. Interest

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Hanson Incorporated issued $1 million of 7%, 10-year bonds on July 1, 2013, at face value. Interest is payable each December 31. The company has chosen to apply the fair value option in accounting for the bonds. A risk assessment at December 31, 2014, shows that Hanson's credit risk has increased, and as a result, the fair value of the bonds is $900,000 on that date. Prepare the company's journal entries on December 31, 2014, if Hanson follows
(a) ASPE,
(b) IAS 39,
(c) IFRS 9 (mandatorily adoptable in 2015)
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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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