On July $9,2024,$ Sheridan Enterprises Inc. discovered it had recorded the $$70,000$ purchase of land as a legal expense on November $8,$

The company had reported retained earnings of $$533,500$ at its previous year end, December $31,2023.$

During $2024,$ Sheridan had profit of $$179,000$ and it declared and paid cash dividends of $$201,000.$ Sheridan has a $25\%$ income tax

rate.

$($a$)$

Prepare the journal entry to correct the error. $($Credit account titles are automatically indented when the amount is entered. Do not

indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before

credit entries.$)$

Date Account Titles

Debit

Credit

Jan. $1$Assuming the company reports under ASPE, prepare a statement of retained earnings. $($List items that increase adjusted retained

eamings first.$]$

SHERIDAN ENTERPRISES INC.

Statement of Retained Earnings

$

$2$

$$