Saffron Enterprises Inc , a U S based company, purchases a 4 percent bond denominated in euros for $1,500 on January 1, Year 1, when the exchange rate is $1 50 per euro (In other words, the purchase price was 1,000 euros ) The bond was purchased at par value At December 31, Year 1, the fair value o...

Saffron Enterprises Inc has a bond investment that it has classified as availableforsale Thus change ...

Saffron Enterprises Inc., a U.S.-based company, purchases a 4 percent bond denominated in euros for $1,500 on

Question:

Saffron Enterprises Inc., a U.S.-based company, purchases a 4 percent bond denominated in euros for $1,500 on January 1, Year 1, when the is $1.50 per euro. (In other words, the purchase price was 1,000 euros.) The bond was purchased at par value. At December 31, Year 1, the fair value of the bond in the marketplace is 1,050 euros and the is $1.40 per euro. Saffron classifies its investment in bonds as available for sale.

Required:
Prepare the journal entries that Saffron Enterprises should record in Year 1 related to its investment in euro-denominated bonds. Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...