What other step(s) would be taken in connection with the error? (Select all that apply.)
No further steps are requiredcheckbox unchecked1 of 5 Disclosure notecheckbox unchecked2 of 5 Prior period adjustment to retained earningscheckbox unchecked3 of 5 Affected accounts retrospectively restated in comparative financial statementscheckbox unchecked4 of 5 Affected accounts prospectively restated onlycheckbox unchecked5 of 5

Wilkins Food Products Inc. acquired a packaging machine from Lawrence Specialists Corporation. Lawrence completed construction of the machine on January 1, 2014. In payment for the machine Wilkin:s 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 rate of 12%. Lawrence made a conceptual error in preparing the amortization schedule which Wilkins failed to discover until 2016. As a result of the error, Wilkins understated interest expense by $47,000 in 2014 and $42,000 in 2015. Required 1. Indicate in the table below which accounts are incorrect as a result of these errors at January 1, 2016 and whether those accounts are understated or overstated. (Ignore income taxes.) Account 2014 2015 2. Prepare a journal entry to correct the error. (If no entry is required for a transaction/event, select "No ournal entry required" in the first account field.)