Refer to the bond situation of Gaz Métropolitain, Inc. in Exercise 15-21. Assume Gaz Métropolitain, Inc. issued the bonds at a price of 98.50 and that the company uses the effective-interest amortization method. The company's year end is December 31.
Required
1. Journalize the following bond transactions of Gaz Métropolitain, Inc.: 2014
May 16 Issuance of the bonds.
Nov. 16 Payment of interest expense and amortization of discount on bonds payable. The market rate on the date of issuance was 9.2 percent.
Dec. 31 Accrual of interest expense and amortization of discount on bonds payable.
2. What is Gaz Métropolitain, Inc.'s carrying amount of the bonds payable at
a. November 16, 2014?
b. December 31, 2014?
c. May 16, 2015?