At the end of 2015, Majors Furniture Company failed to accrue $62,500 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 75,000 Discount on bonds payable 1,500 Cash 73,500

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.)

Record the entry to correct the error.

Record the adjusting entry for interest on Dec. 31, 2016.

Prepare journal entry that should have been recorded, if done correctly to start.

Record the adjusting entry for interest on Dec. 31, 2015 as it should have been recorded.

Record the interest payment on February 1, 2016 as it should have been recorded.