Exercise 20-22 (Algo) Error correction; accrued interest on bonds [LO20-6] At the end of 2020 , Majors Furniture Company failed to accrue $67,500 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 paid: 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. Complete this question by entering your answers in the tabs below. 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.) Exercise 20-22 (Algo) Error correction; accrued interest on bonds [LO20-6] At the end of 2020 , Majors Furniture Company failed to accrue $67,500 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 paid: 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. (lgnore income taxes.) 1-b. Prepare the journal entries that should have been recorded, if done correctly to start. Complete this question by entering your answers in the tabs below. Prepare the journal entries that should have been recorded, if done correctly to start. (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 Record the adjusting entry for interest on Dec. 31,2020 as it should have been recorded. Note: Enter debits before credits. Exercise 20-22 (Algo) Error correction; accrued interest on bonds [LO20-6] At the end of 2020 , Majors Furniture Company failed to accrue $67,500 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 paid: 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. (lgnore income taxes.) 1-b. Prepare the journal entries that should have been recorded, if done correctly to start. Complete this question by entering your answers in the tabs below. Prepare the journal entries that should have been recorded, if done correctly to start. (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 Record the interest payment on February 1, 2021 as it should have been recorded. Note: Enter debits before credits