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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Error correction; accrued interest on bonds
At the end of 2015, Majors Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2015 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, 2016, when the semiannual interest was paid:
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Required:
Prepare any journal entry necessary to correct the errors as of February 2, 2016 when the errors were discovered. Also, prepare any adjusting entry at December 31, 2016, related to the situation described. (Ignore income taxes.)
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