First Quarter Second Quarter S 13,000 $19,000 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income S 3,700 2,800 6,500 3.300 3,300 12,200 15,500 9,600 9,800 4.700 S 5,100 5.900 13,100 5,300 S 7,800 During the third quarter, it was discovered that the ending inventory for the first quarter should have been $3,830 3. Prepare corrected income statements for each quarter. First Quarter Second Quarter Sales revenue 13,000 19,000 Cost of goods sold Beginning inventory Purchases 3,700 2,800 3,830 12,200 Goods available for sale 6,500 16,030 Ending inventory Cost of goods sold Gross profit 4. Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the income statement 1st Quarter 2nd Quarter Incorrect Correct Error Incorrect Correct Error Beginning inventory Ending inventory Cost of goods sold Gross profit Pretax income