On July 9, 2021, Oriole 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 $590,500 at its previous year end, December 31, 2020. During 2021, Oriole had profit of $199,000 and it declared and paid cash dividends of $222,000. Oriole 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 LandIncome Tax ExpenseCashIncome Tax PayableRetained Earnings	enter a debit amount	enter a credit amount
	select an account title to record correction of error on January 1 CashIncome Tax ExpenseRetained EarningsLandIncome Tax Payable	enter a debit amount	enter a credit amount
	select an account title to record correction of error on January 1 LandIncome Tax ExpenseCashIncome Tax PayableRetained Earnings	enter a debit amount	enter a credit amount
	(To record correction of error.)

eTextbook and Media

Question Part Score

--/3

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

ORIOLE ENTERPRISES INC. Statement of Retained Earnings choose the accounting period Year Ended December 31, 2021December 31, 2021Month Ended December 31, 2021
select an opening name Balance, January 1 as AdjustedRevenuesTotal RevenuesCash DividendsTotal ExpensesRetained Earnings, December 31Profit / (Loss)Correction of Error in Recording Purchase of Land in 2020ExpensesBalance, January 1 as Previously Reported	$enter a dollar amount
select between addition and deduction AddLess: select an item Total RevenuesProfit / (Loss)ExpensesBalance, January 1 as AdjustedRetained Earnings, December 31Cash DividendsRevenuesBalance, January 1 as Previously ReportedTotal ExpensesCorrection of Error in Recording Purchase of Land in 2020	enter a dollar amount
select a summarizing line for the first part Retained Earnings, December 31ExpensesRevenuesTotal RevenuesCorrection of Error in Recording Purchase of Land in 2020Total ExpensesBalance, January 1 as AdjustedCash DividendsProfit / (Loss)Balance, January 1 as Previously Reported	enter a total amount for the first part
select between addition and deduction AddLess: select an item Balance, January 1 as Previously ReportedCorrection of Error in Recording Purchase of Land in 2020Profit / (Loss)Retained Earnings, December 31ExpensesBalance, January 1 as AdjustedTotal RevenuesTotal ExpensesCash DividendsRevenues	enter a dollar amount
	enter a subtotal of the two previous amounts
select between addition and deduction AddLess: select an item Balance, January 1 as Previously ReportedRevenuesTotal ExpensesBalance, January 1 as AdjustedCash DividendsRetained Earnings, December 31Correction of Error in Recording Purchase of Land in 2020ExpensesProfit / (Loss)Total Revenues	enter a dollar amount
select a closing name Retained Earnings, December 31Total ExpensesCash DividendsExpensesTotal RevenuesBalance, January 1 as AdjustedProfit / (Loss)Balance, January 1 as Previously ReportedCorrection of Error in Recording Purchase of Land in 2020Revenues	$enter a total amount

eTextbook and Media