Question: On July 9, 2017, Silver Fox Enterprises Inc. discovered it had recorded the $75,000 purchase of land as legal expense on November 8, 2016. The

On July 9, 2017, Silver Fox Enterprises Inc. discovered it had recorded the $75,000 purchase of land as legal expense on November 8, 2016. The company had reported retained earnings of $573,500 at its previous year end, December 31, 2016.
During 2017, 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.

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