1,2,3 REQUIRED

Dallas Corporation prepared the following two income statements: First Quarter $ 22,500 Second Quarter $27,000 Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations $ 4,500 8,500 13,000 5,500 $ 5,500 13,500 19,000 10,500 7,500 15,000 6,500 $ 8,500 8,500 18,500 7,500 $11,000 During the third quarter, the company's internal auditors discovered that the ending inventory for the first quarter should have been $6,550. The ending inventory for the second quarter was correct. Required: 1. What effect would the error have on total Income from Operations for the two quarters combined? 2. What effect would the error have on Income from Operations for each of the two quarters? 3. Prepare corrected income statements for each quarter. Ignore income taxes. Complete this question by entering your answers in the tabs below. Required 1 Required 3 What effect would the error have on total Income from Operations for the two quarters combined? Two Quarters Combined Required 1 Required 2 Required 3 What effect would the error have on Income from Operations for each of the two quarters? First Quarter Second Quarter Required 1 Required 2 Required 3 Prepare corrected income statements for each quarter. Ignore income taxes. Dallas Corporation Income Statement (Partial) First Quarter Second Quarter