complete the following activities and submit your answers to your instructor in 327551

CHAPTER 14 Bonds and Long Term Notes 789 1,200 72,000 E14 15 Error correction; accrued interest on bonds • LO2 At the end of 2010, Majors Furniture Company failed to accrue $61,000 of interest expense that accrued during the last five months of 2010 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, 2011, when the semiannual interest was paid: 73,200 Interest expense Discount on bonds payable?Cash Required: Prepare any journal entry necessary to correct the error as of January 1, 2011, so that prior years’ financial statements can be restated. Also, prepare any adjusting entry at February 28, 2011, related to the situation described. (Ignore income taxes.) E14 16 Error in amortization schedule • LO3 Wilkins Food Products, Inc., acquired a packaging machine from Lawrence Specialists Corporation. Lawrence completed construction of the machine on January 1, 2009. In payment for the machine Wilkins issued a three year installment note to be paid in three equal payments at the end of each year. The payments include interest at the rate of 10%. Lawrence made a conceptual error in preparing the amortization schedule, which Wilkins failed to discover until 2011. The error had caused Wilkins to understate interest expense by $45,000 in 2009 and $40,000 in 2010. Required: Determine which accounts are incorrect as a result of these errors at January 1, 2011, before any adjustments.?Explain your answer. (Ignore income taxes.) Prepare a journal entry to correct the error. What other step(s) would be taken in connection with the error? E 14 17 Note with unrealistic interest rate; amortization schedule • LO3 Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom made lathe. The machine was completed and ready for use on January 1, 2011. Amber paid for the lathe by issuing a $600,000, three year note that specified 4% interest,…