Waymire Company prepared the partial income statements presented below for 2009 and 2008:

Required:
1. Prepare corrected income statements for 2009 and 2008.
2. Prepare a schedule showing each financial statement item affected by the error and the amount of the error for that item. Indicate whether each error is an overstatement (+) or an understatement(€“).

Transcribed Image Text:

2009 2008 $538,200 $483,700 Sales revenue Cost of goods sold Beginning inventory Purchases Cost of goods available $39,300 343,200 32,100 292,700 for sale $382,500 46,800 $324,800 39,300 Ending inventory Gross margin Operating expenses Income before taxes 335,700 $202,500 167,200 35,300 285,500 $198,200 151,600 $ 46,600