THE FOLLOWING ERROR WAS DISCOVERED IN THE YEAR AFTER THE YEAR OF ERROR (YEAR TWO) BUT BEFORE THE BOOKS WERE CLOSED IN YEAR TWO. REVIEW THE FACTS AND ANSWER THE QUESTION RELATED TO EACH FACT PATTERN. Error #1 In 20X7 Motown received cash for the issuance of common stock. When they received the cash they debited Cash and inadvertently credited Preferred Stock. Additional facts follow. 12,000 Amount of cash received for 20x7 $ Error discovered 20X8 before the books are closed. IGNORE INCOME TAXES. Original entry in 20X7 was: $ 12,000 Cash Preferred Stock $ 12,000 17.) The required correcting journal entry in 20X8 is as follow: 18.) A retrospective adjustment to previously published financial statements can erode confidence in the results. A TRUE B. FALSE