At the end of 2012, Majors Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2012 on bonds payable. The bonds mature in 2026. The discount on the bonds is amortized by the straight-line method. The following entry was recorded on February 1, 2013, when the semiannual interest was paid:

Required:
Prepare any journal entry necessary to correct the errors as of February 2, 2013 when the errors were discovered. Also, prepare any adjusting entry at December 31, 2013, related to the situation described.
(Ignore incometaxes.)

Transcribed Image Text:

Interest expens 73,200 Discount on bonds payable Cash. 1,200 72,000