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On December 12, 2011, an investment costing $80,000 was sold for $100,000. The total of the sale proceeds was credited to the investment account.
Required:
1. Prepare the journal entry to correct the error assuming it is discovered before the books are adjusted or closed in 2011. (Ignore income taxes.)
2. Prepare the journal entry to correct the error assuming it is not discovered until early 2012. (Ignore income taxes.)
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