Natural Corporation is a public U S company that produces and distributes alternative energy drinks Its 2010 balance sheet includes $165 million in held to maturity bonds Hansen reports its HTM securities as follows Assume that the HTM bonds on Hansen 's 2010 balance sheet have a 2 year remaining l...

a Impairment loss 34000000 Investments in HTM secu ...

Natural Corporation is a public U.S. company that produces and distributes alternative energy drinks. Its 2010 balance

Question:

Natural is a public U.S. company that produces and distributes "alternative" energy drinks. Its 2010 includes $165 million in held-to-maturity bonds. Hansen reports its HTM securities as follows:
Assume that the HTM bonds on Hansen's 2010 have a 2-year remaining life, were acquired at par, and pay interest each December 31 at 4 percent. Hansen determines that due to another than temporary decline in the issuer's liquidity, the fair value of the bonds is $131 million.
Required
a. Prepare Hansen's journal entry to record the impairment loss for 2010. Where is the loss reported in Hansen's financial statements?
b. What is Hansen's new yield on the bonds? Round to the nearest percent
c. Assume Hansen receives its interest payment on December 31, 2011, as usual. Calculate reported interest revenue, and prepare Hansen's journal entry to record receipt of the interest. At what value does the investment appear on Hansen's December 31, 2011, Assume that on December 31, 2011, the issuer's financial health has improved and the bonds" fair value is now $165 million. How does Hansen report this information? Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...