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    Prepare journal entries associated with changes due to error

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    Prepare journal entries associated with changes due to errors. How do they relate to the practice of accounting and its uses in business?

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    Changes due to errors can really take several different forms. If we needed to make a journal entry due to an error for a change in accounting principle for a construction company, we would do the following:

    Construction in process 130,000
    Income taxes payable 52,000
    Retained Earnings 78,000 (insert ...

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    This solution prepares journal entries associated with changes due to errors.

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