Chapter 7 Saved Help Save & Exit Submit Check my work 6 Grants Corporation prepared the following two income statements (simplified for illustrative purposes 10 points Skipped Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income First Quarter $12,400 $ 3,800 2.500 6,300 3,200 3.100 9,380 4,500 $ 4,888 Second Quarter $19,400 $ 3,200 12.400 15,600 9,200 6,400 13.000 5,500 $ 7,500 eBook Print References During the third quarter, it was discovered that the ending inventory for the first quarter should have been $3.710 Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 3. Prepare corrected income statements for each quarter. 4. Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the income statement Complete this question by entering your answers in the tabs below. Question 6 - Ch. Daniel Company C Daniel Company... C Beginning inven. MU RIU.com Offers Saved During the third quarter, it was discovered that the ending inventory for the first quarter should have bee Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 3. Prepare corrected income statements for each quarter. 4. Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the in Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Reg 4 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 1. Effect on combined pretax income 2. Quarter(s) (Roq 1 and Req3 > 4. Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req 4 Prepare corrected income statements for each quarter. First Quarter Second Quarter + Cost of goods sold: Goods available for sale Cost of goods sold