diff --git a/abci/cmd/abci-cli/abci-cli.go b/abci/cmd/abci-cli/abci-cli.go
index 3888b3637..16b210709 100644
--- a/abci/cmd/abci-cli/abci-cli.go
+++ b/abci/cmd/abci-cli/abci-cli.go
@@ -332,9 +332,7 @@ func cmdTest(cmd *cobra.Command, args []string) error {
 			func() error {
 				return servertest.PrepareProposal(client, [][]byte{
 					{0x01},
-				}, []types.TxRecord_TxAction{
-					types.TxRecord_UNMODIFIED,
-				}, nil)
+				}, [][]byte{{0x01}}, nil)
 			},
 			func() error {
 				return servertest.ProcessProposal(client, [][]byte{
@@ -638,22 +636,12 @@ func cmdPrepareProposal(cmd *cobra.Command, args []string) error {
 	if err != nil {
 		return err
 	}
-	resps := make([]response, 0, len(res.TxRecords)+1)
-	for _, tx := range res.TxRecords {
-		existingTx := inTxArray(txsBytesArray, tx.Tx)
-		if tx.Action == types.TxRecord_UNKNOWN ||
-			(existingTx && tx.Action == types.TxRecord_ADDED) ||
-			(!existingTx && (tx.Action == types.TxRecord_UNMODIFIED || tx.Action == types.TxRecord_REMOVED)) {
-			resps = append(resps, response{
-				Code: codeBad,
-				Log:  "Failed. Tx: " + string(tx.GetTx()) + " action: " + tx.Action.String(),
-			})
-		} else {
-			resps = append(resps, response{
-				Code: code.CodeTypeOK,
-				Log:  "Succeeded. Tx: " + string(tx.Tx) + " action: " + tx.Action.String(),
-			})
-		}
+	resps := make([]response, 0, len(res.Txs))
+	for _, tx := range res.Txs {
+		resps = append(resps, response{
+			Code: code.CodeTypeOK,
+			Log:  "Succeeded. Tx: " + string(tx),
+		})
 	}
 
 	printResponse(cmd, args, resps...)
diff --git a/abci/example/kvstore/persistent_kvstore.go b/abci/example/kvstore/persistent_kvstore.go
index dfc7a96d7..500d4c5c9 100644
--- a/abci/example/kvstore/persistent_kvstore.go
+++ b/abci/example/kvstore/persistent_kvstore.go
@@ -310,9 +310,7 @@ const (
 	ReplacePrefix = "replace"
 )
 
-func isPrepareTx(tx []byte) bool {
-	return bytes.HasPrefix(tx, []byte(PreparePrefix))
-}
+func isPrepareTx(tx []byte) bool { return bytes.HasPrefix(tx, []byte(PreparePrefix)) }
 
 func isReplacedTx(tx []byte) bool {
 	return bytes.HasPrefix(tx, []byte(ReplacePrefix))
@@ -339,7 +337,7 @@ func (app *PersistentKVStoreApplication) substPrepareTx(blockData [][]byte, maxT
 		if totalBytes > maxTxBytes {
 			break
 		}
-		txs = append(txs, tx)
+		txs = append(txs, txMod)
 	}
 	return txs
 }
diff --git a/abci/tests/server/client.go b/abci/tests/server/client.go
index 0de84471a..76d315216 100644
--- a/abci/tests/server/client.go
+++ b/abci/tests/server/client.go
@@ -65,13 +65,13 @@ func DeliverTx(client abcicli.Client, txBytes []byte, codeExp uint32, dataExp []
 	return nil
 }
 
-func PrepareProposal(client abcicli.Client, txBytes [][]byte, codeExp []types.TxRecord_TxAction, dataExp []byte) error {
+func PrepareProposal(client abcicli.Client, txBytes [][]byte, txExpected [][]byte, dataExp []byte) error {
 	res, _ := client.PrepareProposalSync(types.RequestPrepareProposal{Txs: txBytes})
-	for i, tx := range res.TxRecords {
-		if tx.Action != codeExp[i] {
+	for i, tx := range res.Txs {
+		if !bytes.Equal(tx, txExpected[i]) {
 			fmt.Println("Failed test: PrepareProposal")
-			fmt.Printf("PrepareProposal response code was unexpected. Got %v expected %v.",
-				tx.Action, codeExp)
+			fmt.Printf("PrepareProposal transaction was unexpected. Got %x expected %x.",
+				tx, txExpected[i])
 			return errors.New("PrepareProposal error")
 		}
 	}
diff --git a/abci/tests/test_cli/ex1.abci b/abci/tests/test_cli/ex1.abci
index f9817928a..e772593cc 100644
--- a/abci/tests/test_cli/ex1.abci
+++ b/abci/tests/test_cli/ex1.abci
@@ -11,7 +11,7 @@ deliver_tx "def=xyz"
 commit
 query "def"
 prepare_proposal "preparedef"
-process_proposal "def"
+process_proposal "replacedef"
 process_proposal "preparedef"
 prepare_proposal
 process_proposal
diff --git a/abci/tests/test_cli/ex1.abci.out b/abci/tests/test_cli/ex1.abci.out
index 2cc1ad7c1..dbc818855 100644
--- a/abci/tests/test_cli/ex1.abci.out
+++ b/abci/tests/test_cli/ex1.abci.out
@@ -10,7 +10,7 @@
 
 > prepare_proposal "abc"
 -> code: OK
--> log: Succeeded. Tx: abc action: UNMODIFIED
+-> log: Succeeded. Tx: abc
 
 > process_proposal "abc"
 -> code: OK
@@ -59,11 +59,9 @@
 
 > prepare_proposal "preparedef"
 -> code: OK
--> log: Succeeded. Tx: def action: ADDED
--> code: OK
--> log: Succeeded. Tx: preparedef action: REMOVED
+-> log: Succeeded. Tx: replacedef
 
-> process_proposal "def"
+> process_proposal "replacedef"
 -> code: OK
 -> status: ACCEPT