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Conrad Playground Supply underwent a restructuring in 2018. The company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred during 2018 before any adjusting entries or closing entries are prepared.
Retained earnings2,000 Common stock 2,000The shares had a market price at the time of $12 per share.
Required:
For each error, prepare any journal entry necessary to correct the error as well as any year-end adjusting entry for 2018 related to the situation described. (Ignore income taxes.) (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
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