On July 9, 2021, Carla Vista Enterprises Inc. discovered it had recorded the $71,000 purchase of land as legal expense on November 8, 2020. The company had reported retained earnings of $545,000 at its previous year end. December 31, 2020. During 2021, Carla Vista had profit of $183,000 and it declared and paid cash dividends of $205,000. Carla Vista has a 25% income tax rate. 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 O for the amounts.) Date Account Titles and Explanation Jan. 1 (To record correction of error) Debit Credit Assuming the company reports under ASPE, prepare a statement of retained earnings. (List items that increase retained earning first.) CARLA VISTA ENTERPRISES INC. Statement of Retained Earnings