At the end of 2017, Majors Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2017 on bonds payable. The bonds mature in 2029. The discount on the bonds is amortized by the straight-line method. The following entry was recorded on February 1, 2018, when the semiannual interest was paid:

Interest expense ................................................................................. 73,200

Discount on bonds payable .......................................................... 1,200

Cash .................................................................................................. 72,000

Required:

Prepare any journal entry necessary to correct the error, as well as any adjusting entry for 2018 related to the situation described. (Ignore income taxes.)