solve for retained earning and note payable

Wilkins Food Products Inc. acquired a packaging machine from Lawrence Specialists Corporation. Lawrence completed construction of the machine on January 1, 2016. In payment for the machine Wilkins issued a three-year installment note to be paid in three equal payments at the end of each year. The payments include interest at the rte of 12%. Lawrence made a conceptual error in preparing the amortization schedule, which Wilkins failed to discover until 2018. As a result of the error Wilkins understated interest expense by $47,000 in 2016 and $42,000 in 2017 Required: 1. Indicate in the table below which accounts are incorrect as a result of these errors at January 1, 2018 and whether those accounts are understated or overstated. (Ignore income taxes.) 2. Prepare a journal entry to correct the error Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a journal entry to correct the error. account field.) event, select "No journal entry required" in the Debit Event No ings