The ledger of Sandhill Limited at October 31, 2017, contains the following summary data:

Cash dividendscommon		$125,000
Common shares		650,000
Depreciation expense		97,000
Fees earned		1,471,000
Operating expenses		931,000
Interest expense		60,000
Retained earnings, November 1, 2016		575,000

Your analysis reveals the following additional information:

1.		The company has a 25% income tax rate.
2.		On March 19, 2017, Sandhill discovered an error made in the previous fiscal year. A $61,000 payment of a note payable had been recorded as interest expense.
3.		On April 10, 2017, common shares costing $81,000 were reacquired for $105,000. This is the first time the company has reacquired common shares.

Prepare a journal entry to correct the prior period 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 Debit Credit Mar. 19, 2017 Notes Payable 61,000 Income Tax Payable 15250 Retained Earnings 45750 Prepare the journal entry to record the reacquisition of common shares. (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 Debit Credit Apr. 10, 2017 Common Shares 81,000 Retained Earnings 24000 Cash 105,000 Calculate profit for the year ended October 31, 2017. Profit 287250 $ Prepare the statement of retained earnings for the company for the year ended October 31, 2017. (List items that increase retained earnings first.) SANDHILL LIMITED Statement of Retained Earnings Year Ended October 31, 2017 Balance, November 1, 2016 as Previously Reported 575,000 $1 Add Correction of Error in Recording Payment on Notes Payable in 2016 V 45750 Balance, November 1 as Adjusted 620750 Add v Profit/ (Loss) 2872501 908000 Less V Cash Dividends 125,000 Reacquired Common Shares 81,000 206000 Balance October 31, 2017 702000