Dallas Corporation prepared the following two income statements: First Quarter $ 18,000 Second Quarter $ 21,600 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 $ 3,600 7,600 11, 20e 4,600 $ 4,600 12,600 17,200 9,600 6,600 11,400 5,600 $ 5,800 7,600 14,000 6,600 $ 7,400 During the third quarter the company's internal auditors discovered that the ending Inventory for the first quarter should have been $5,200. 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. Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $73,000 and Cost of Goods Sold or $426,000. a. Included in Inventory (and Accounts Payable) are $10,600 of lenses SLC is holding on consignment b. Included in SLC's Inventory balance are $5,300 of office supplies held in SLC's warehouse c. Excluded from SLC's Inventory balance are $8,300 of lenses in the warehouse, ready to send to customers on January 2. SLC reported these lenses as sold on December 31, at a price of $15,600. d. Included in SLC's Inventory balance are $3,150 of tenses that were damaged in December and will be scrapped in January, with zero realizable value Required: For each item, (a)-(d), prepare the journal entry to correct the balances presently reported. (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)