On July 9, 2024, Silver Fox Enterprises Inc. discovered it had recorded the $75,000 purchase of land as a legal expense on November 8, 2023. The company had reported retained earnings of $573,500 at its previous year end, December 31, 2023. During 2024, Silver Fox had profit of $193,000 and it declared and paid cash dividends of $216,000. Silver Fox has a 25% income tax rate. 

Instructions 

a. Prepare the journal entry to correct the error. 

b. Assuming the company reports under ASPE, prepare a statement of retained earnings.