Wilkins Food Products Inc. acquired a packaging machine from Lawrence Specialists Corporation Lawrence completed construction of the machine on January 1, 2019. 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 rate of 11%. Lawrence made a conceptual error in preparing the amortization schedule, which Wilkins failed to discover until 2021. As a result of the error, Wilkins understated interest expense by $64,000 in 2019 and $59.000 in 2020. Required: 1. Indicate in the table below which accounts are incorrect as a result of these errors at January 1, 2021 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. Required 1 Required 2 Required 3 Indicate in the table below which accounts are incorrect as a result of these errors at January 1, 2021 and whether those accounts are understated or overstated. (Ignore income taxes.) Account 2019 2020 Wilkins Food Products Inc. acquired a packaging machine from Lawrence Specialists Corporation Lawrence completed construction of the machine on January 1, 2019. 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 rate of 11%. Lawrence made a conceptual error in preparing the amortization schedule, which Wilkins failed to discover until 2021. As a result of the error, Wilkins understated interest expense by $64,000 in 2019 and $59.000 in 2020. Required: 1. Indicate in the table below which accounts are incorrect as a result of these errors at January 1, 2021 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. Required 1 Required 2 Required 3 Indicate in the table below which accounts are incorrect as a result of these errors at January 1, 2021 and whether those accounts are understated or overstated. (Ignore income taxes.) Account 2019 2020 Required 1 Required 2 Required 3 Prepare a journal entry to correct the error. (If no entry is required for a transaction/event, select " account field.) View transaction list Journal entry worksheet Record correction of error. Note: Enter debits blore credits. General Journal Event 1 Debit Credit Record entry Clear entry View general journal 2040. Required: 1. Indicate in the table below which accounts are incorrect as a result of these errors at January 1, 2021 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. Required 1 Required 2 Required 3 Will Wilkins account for the error (a) retrospectively or (b) prospectively? Wilkins account for the error
