Exercise 20-22 Error correction; accrued interest on bonds [LO20-6] At the end of 2015, Majors Furniture Company failed to accrue $66,000 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 79,200 Discount on bonds payable 2,200 Cash 77,000

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.)

1.Record the entry to correct the error.

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

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.)

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

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