Grants Corporation prepared the following two income statements (simplified for illustrative purposes):

	First Quarter						Second Quarter
Sales revenue			$	12,600							$	20,000
Cost of goods sold
Beginning inventory	$ 3,600						$	3,700
Purchases	2,500							12,200
Goods available for sale	6,100							15,900
Ending inventory	3,700							9,000
Cost of goods sold				2,400								6,900
Gross profit				10,200								13,100
Expenses				4,100								5,800
Pretax income			$	6,100							$	7,300

During the third quarter, it was discovered that the ending inventory for the first quarter should have been $4,210.

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.

Please help! thank you in advance!

3. Prepare corrected income statements for each quarter. X Answer is not complete. First Quarter Second Quarter Sales revenue $ 12,600 Cost of goods sold: Beginning inventory Purchases 3,600 $ 3,600 2,500 12,200 Goods available for sale 6,100 15,800 Ending inventory 4,100 X 9,000 Cost of goods sold Gross profit Operating expenses Pretax income 4. Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the income statement. X Answer is not complete. 1st Quarter 2nd Quarter Incorrect Correct Error Incorrect Correct Error $ 3,600 3,700 Beginning inventory Ending inventory Cost of goods sold Gross profit 2,400 2,500 X 10,200 6,100 Pretax income