At the end of 2012, Majors Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2012 on bonds payable. The bonds mature in 2024. The discount on the bonds is amortized by the straight-line method. The following entry was recorded on February 1, 2013, when the semiannual interest was paid:

Required:
Prepare any journal entry necessary to correct the error as well as any adjusting entry for 2013 related to the situationdescribed.

Transcribed Image Text:

nterest expense 73,200 Discount on bonds payable.. Cash 1,200 72,000