At the end of 2023, Martinez Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2023 on bonds payable. The bonds mature in 2035. 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: General Journal Interest expense Discount on bonds payable Cash Debit Credit 73,200 1,200 72,000
At the end of 2023, Martinez Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2023 on bonds payable. The bonds mature in 2035. 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: General Journal Interest expense Discount on bonds payable Cash Debit Credit 73,200 1,200 72,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
need answer this with correct and complete explanation , narration ,computation for each parts and steps clearly answer in text form please show computation and explanation for each calculation clearly
![Exercise 20-22 (Static) Error correction; accrued interest on bonds [LO20-6]
At the end of 2023, Martinez Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months
of 2023 on bonds payable. The bonds mature in 2035. 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:
General Journal
Interest expense
Discount on bonds payable
Cash
Debit
73,200
Credit
1,200
72,000
Required:
1-a. Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2024 related to the situation
described. (Ignore income taxes.)
1-b. Prepare the journal entries that should have been recorded, if dore correctly to start.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 18
Prepare the journal entries that should have been recorded, if done correctly to start.
Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the
first account field.
View transaction list
View journal entry worksheet
No
Event
General Journal
1
1
Interest expense
Discount on bonds payable
Interest payable
2
2
Interest expense
Interest payable
Discount on bonds payable
Cash
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1a66c98-2f08-4542-b4ff-514bcfcbc410%2F8de224bc-2747-49c9-9593-dfdb28932678%2Fyyui7ts_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 20-22 (Static) Error correction; accrued interest on bonds [LO20-6]
At the end of 2023, Martinez Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months
of 2023 on bonds payable. The bonds mature in 2035. 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:
General Journal
Interest expense
Discount on bonds payable
Cash
Debit
73,200
Credit
1,200
72,000
Required:
1-a. Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2024 related to the situation
described. (Ignore income taxes.)
1-b. Prepare the journal entries that should have been recorded, if dore correctly to start.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 18
Prepare the journal entries that should have been recorded, if done correctly to start.
Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the
first account field.
View transaction list
View journal entry worksheet
No
Event
General Journal
1
1
Interest expense
Discount on bonds payable
Interest payable
2
2
Interest expense
Interest payable
Discount on bonds payable
Cash
Debit
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education