At the end of 2020, Majors Furniture Company failed to accrue
$69,000 of interest expense that accrued during the last five
months of 2020 on bonds payable. The bonds mature in 2032. The
discount on the bonds is amortized by the straight-line method. The
following entry was recorded on February 1, 2021, when the
semiannual interest was paid:
|Discount on bonds payable||2,800|
1-a. Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2021 related to the situation described. (Ignore income taxes.)
1-b. Prepare the journal entries that should have been recorded, if done correctly to start.
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