At the end of 2015, Majors Furniture Company failed to accrue $66,500 of interest expense that accrued during the last five months of 2015 on bonds payable. The bonds mature in 2027. The discount on the bonds is amortized by the straight-line method.

The following entry was recorded on February 1, 2016, when the semiannual interest was paid: Interest expense 79,800 Discount on bonds payable 2,300 Cash 77,500

Required: Prepare any journal entry necessary to correct the error as well as any adjusting entry for 2016 related to the situation described. (Ignore income taxes.) (Do not round intermediate calculations and round your final answers to nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare journal entry that should have been recorded, if done correctly to start. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)