with step and explanation

Grants Corporation prepared the following two income statements (simplified for illustrative purposes) First Quarter Second Quarter $ 12,900 $18,200 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income $ 3,800 3,100 6,900 3,100 $ 3,100 12,300 15,400 9,500 3,800 9,100 4,900 $4,200 5,900 12,300 5,300 $ 7,000 During the third quarter, it was discovered that the ending inventory for the first quarter should have been $3,610 3. Prepare corrected income statements for each quarter. First Quarter Second Quarter Sales revenue Cost of goods sold: 12,900 $18,200 Beginning inventory Purchases 3,800 3,100 3,100 12,300 Goods available for sale 6,900 15,400 Ending inventory 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. 1st Quarter 2nd Quarter Incorrect Correct Error Incorrect Correct Error Beginning inventory Ending inventory Cost of goods sold Gross profit Pretax income