At the end of 2020, Majors Furniture Company falled to accrue $61,500 of Interest expense that accrued during the last five months of 2020 on bonds payable. The bonds mature in 2032. The discount on the bonds is amortized by the straight-line method. The following entry was recorded on February 1, 2021, when the semiannual Interest was pald: Interest expense Discount on bonds payable Cash Required: 1-a. Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2021 related to the situation described. (Ignore Income taxes.) 1-b. Prepare the journal entries that should have been recorded, if done correctly to start. Req 1A Complete this question by entering your answers in the tabs below. View transaction list Req 18 Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2021 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.) Journal entry worksheet < 2 1 Record the entry to correct the error. 73,800 Note: Enter debits before credits. Event 1 Record entry 1,300 72,500 General Journal Clear entry Debit Credit View general journal >
At the end of 2020, Majors Furniture Company falled to accrue $61,500 of Interest expense that accrued during the last five months of 2020 on bonds payable. The bonds mature in 2032. The discount on the bonds is amortized by the straight-line method. The following entry was recorded on February 1, 2021, when the semiannual Interest was pald: Interest expense Discount on bonds payable Cash Required: 1-a. Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2021 related to the situation described. (Ignore Income taxes.) 1-b. Prepare the journal entries that should have been recorded, if done correctly to start. Req 1A Complete this question by entering your answers in the tabs below. View transaction list Req 18 Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2021 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.) Journal entry worksheet < 2 1 Record the entry to correct the error. 73,800 Note: Enter debits before credits. Event 1 Record entry 1,300 72,500 General Journal Clear entry Debit Credit View general journal >
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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Transcribed Image Text:At the end of 2020, Majors Furniture Company failed to accrue $61,500 of Interest expense that accrued during the last five months of
2020 on bonds payable. The bonds mature in 2032. The discount on the bonds is amortized by the straight-line method. The
following entry was recorded on February 1, 2021, when the semiannual Interest was pald:
Interest expense
Discount on bonds payable
Cash
Required:
1-a. Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2021 related to the situation described.
(Ignore Income taxes.)
1-b. Prepare the journal entries that should have been recorded, If done correctly to start.
Req 1A
Complete this question by entering your answers in the tabs below.
Req 18
View transaction list
Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2021 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.)
Journal entry worksheet
<
1
2
73,800
Record the entry to correct the error.
Note: Enter debits before credits.
Event
1
Record entry
1,300
72,500
General Journal
Clear entry
Debit
Credit
View general journal
>
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