On January 1 . 2014, Madrid Corp issued 2,000 of its 9 percent, $1,000 bonds at 95 . Interest is payable semiannually on July 1 and January 1 . The bonds mature on January 1 . 2024 . Madrid paid bond issue costs of $80,000, which are appropriately recorded as a deferred charge. Madrid uses the straight-line method of amortizing bond discount and bond issue costs. On Madrid's December 31 . 2014,
balance sheet, how much would be shown as the carrying amount of the bonds payable?
a. $2,110,000
b. $2,090,000
c. $1,982,000
d. $1,910,000
D
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Which of the following is an example of services differentiation?
A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service standard. B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel. C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors. D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores. E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.
Exhibit 15-2 Lawrence, Inc, entered into a subscription contract with several subscribers that calls for the purchase of 2,000 shares of $5 par common stock for $15 a share. The contract calls for a 20% down payment and specifies that any amounts not paid within the contract period will be forfeited in full. ? Refer to Exhibit 15-2. The initial entry to record this subscription and the down
payment would include: A) a credit to Common Stock Subscribed for $10,000. B) a credit to Additional Paid-in Capital from Subscribed Stock for $10,000. C) a debit to Subscriptions Receivable: Common Stock for $30,000. D) a debit to Cash for $2,000.
"Sleepers" in the category management matrix are cash cows
Indicate whether the statement is true or false
A grandmother in her will has written the following: "I leave my antique car to my only grandson, Jordan." Jordan is the:
A) donor. B) life tenant. C) fee holder. D) beneficiary.