Wikins 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 Wikins issued a three-year instaliment note to be paid in three equal payments at the end of each year. The payments include interest at the rate of 14%. Lawrence made a conceptual error in preparing the amortization schedule, which Wikins falled to discover until 2024. As a result of the error, Wilins understated interest expense by $61,000 in 2022 and $56,000 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 toxes.) 2. Prepare a journal entry to correct the ertoc. 3. Will Wikins account for the error (a) retrospectively or (b) prospectively? Answer. is not complete. 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.) 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. (lgnore income taxes.) 2. Prepare a joumal 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. Prepare a journal entry to correct the efror. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet