On July 9, 2021, Ivanhoe Enterprises Inc. discovered it had recorded the $77,000 purchase of land as legal expense on November 8, 2020. The company had reported retained earnings of $585,000 at its previous year end, December 31, 2020. During 2021, Ivanhoe had profit of $197,000 and it declared and paid cash dividends of $220,000. Ivanhoe 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1	select an account title to record correction of error on January 1 Income Tax ExpenseRetained EarningsCashIncome Tax PayableLand	enter a debit amount	enter a credit amount
	select an account title to record correction of error on January 1 Income Tax ExpenseLandCashRetained EarningsIncome Tax Payable	enter a debit amount	enter a credit amount
	select an account title to record correction of error on January 1 Income Tax ExpenseRetained EarningsCashIncome Tax PayableLand	enter a debit amount	enter a credit amount
	(To record correction of error.)

Assuming the company reports under ASPE, prepare a statement of retained earnings. (List items that increase retained earnings first.)

IVANHOE ENTERPRISES INC. Statement of Retained Earnings choose the accounting period December 31, 2021Month Ended December 31, 2021Year Ended December 31, 2021
select an opening name Total ExpensesCorrection of Error in Recording Purchase of Land in 2020Balance, January 1 as Previously ReportedRevenuesCash DividendsTotal RevenuesProfit / (Loss)ExpensesRetained Earnings, December 31Balance, January 1 as Adjusted	$enter a dollar amount
select between addition and deduction AddLess: select an item Total ExpensesTotal RevenuesProfit / (Loss)Cash DividendsRevenuesBalance, January 1 as Previously ReportedRetained Earnings, December 31Correction of Error in Recording Purchase of Land in 2020Balance, January 1 as AdjustedExpenses	enter a dollar amount
select a summarizing line for the first part ExpensesBalance, January 1 as AdjustedRevenuesCash DividendsBalance, January 1 as Previously ReportedTotal ExpensesTotal RevenuesProfit / (Loss)Correction of Error in Recording Purchase of Land in 2020Retained Earnings, December 31	enter a total amount for the first part
select between addition and deduction AddLess: select an item RevenuesCash DividendsBalance, January 1 as AdjustedCorrection of Error in Recording Purchase of Land in 2020Total ExpensesBalance, January 1 as Previously ReportedRetained Earnings, December 31Profit / (Loss)ExpensesTotal Revenues	enter a dollar amount
	enter a subtotal of the two previous amounts
select between addition and deduction AddLess: select an item Profit / (Loss)Balance, January 1 as AdjustedRevenuesTotal ExpensesTotal RevenuesBalance, January 1 as Previously ReportedCorrection of Error in Recording Purchase of Land in 2020Retained Earnings, December 31ExpensesCash Dividends	enter a dollar amount
select a closing name Retained Earnings, December 31Balance, January 1 as Previously ReportedExpensesProfit / (Loss)Balance, January 1 as AdjustedCash DividendsCorrection of Error in Recording Purchase of Land in 2020Total RevenuesRevenuesTotal Expenses	$enter a total amount