At the end of 2017, Majors Furniture Company failed to accrue $65,500 of interest expense that accrued during the last five months of 2017 on bonds payable. The bonds mature in 2029. The discount on the bonds is amortized by the straight-line method. The following entry was recorded on February 1, 2018, when the semiannual interest was paid: Interest expense 78,600 Discount on bonds payable 2,100 Cash 76,500 Required: 1-a. Prepare any journal entry necessary to correct the error as well as any adjusting entry for 2018 related to the situation described. (Ignore income taxes.) 1-b. Prepare journal entry that should have been recorded, if done correctly to start.

Can't figure Interest expense and discount on bond payable

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.) View transaction list View journal entry worksheet No Event General Journal Debit Credit Interest expense 65,500 Interest payable 63,750 Discount on bonds payable 1,750 2 2 Interest expense Interest payable 63,750 Cash 76,500 Discount on bonds payable