Exercise 20-21 (Static) Error in amortization schedule [LO20-6] Wilkins Food Products Incorporated acquired a packaging machine from Lawrence Specialists Corporation. Lawrence completed construction of the machine on January 1, 2022. In payment for the machine Wilkins issued a threeyear installment note to be paid in three equal payments at the end of each year. The payments include interest at the rate of 10%. Lawrence made a conceptual error in preparing the amortization schedule, which Wilkins failed to discover until 2024. As a result of the error, Wilkins understated interest expense by \$45,000 in 2022 and \$40,000 in 2023. Required: 1. Indicate in the table below which accounts are incorrect as a result of these errors at January 1, 2024 and whether those accounts are understated or overstated. (Ignore income taxes.) 2. Prepare a journal entry to correct the error. 3. Will Wilkins account for the error (a) retrospectively or (b) prospectively? Complete this question by entering your answers in the tabs below. Indicate in the table below which accounts are incorrect as a result of these errors at January 1, 2024 and whether those accounts are understated or overstated. (Ignore income taxes.)