During the third quarter, it was discovered that the ending inventory for the first quarter should have been $3,580.

Required:

1.What effect did this error have on the combined pretax income of the two quarters?

2.Which quarter's or quarters' (if any) EPS amounts were affected by this error?

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.

0 X I Homework X Question 10 - Chapter 7 Homewc X + X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.... . .. Apps Kylie School () Kylie Office 365 2 ParentVUE & Kylie Reading ProgroFormative Kylie-Seesaw PaymentPeachcare 2 Portal Login Blue Cross Blue Shi.. Chapter 7 Homework Saved Help Save & Exit Submit stions X Check my work 10 Grants Corporation prepared the following two income statements (simplified for illustrative purposes): 2 First Quarter Second Quarter Sales revenue $ 12,300 $18, 400 Cost of goods sold 1.65 Beginning inventory $ 4,000 $ 3,000 points Purchases 2,700 13, 000 Goods available for sale 6,700 16,000 Ending inventory 3,000 10,000 Cost of goods sold 3,700 6,000 eBook Gross profit 8, 600 12, 400 Expenses 4,500 5,700 Hint Pretax income $ 4, 100 $ 6,700 Print References During the third quarter, it was discovered that the ending inventory for the first quarter should have been $3,580. . .. Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 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. X Complete this question by entering your answers in the tabs below. Mc Graw Hill (pire O) Type here to search O 11 a N 9 0 9:36 PM ? A 1/28/20210 X I Homework X Question 10 - Chapter 7 Homewc X + X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.... . .. Apps Kylie School () Kylie Office 365 2 ParentVUE & Kylie Reading ProgroFormative Kylie-Seesaw PaymentPeachcare 2 Portal Login Blue Cross Blue Shi.. Chapter 7 Homework Saved Help Save & Exit Submit Check my work 10 Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 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. 1.65 points Complete this question by entering your answers in the tabs below. eBook Hint Req 1 and 2 Req 3 Reg 4 Print 1. What effect did this error have on the combined pretax income of the two quarters? References 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 1. Effect on combined pretax income 2. Quarter(s) Mc Graw Hill Type here to search a 9:38 PM O 11 N 9 3 1/28/20210 X I Homework X Question 10 - Chapter 7 Homewc X + X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.... . .. Apps Kylie School () Kylie Office 365 3 ParentVUE & Kylie Reading ProgroFormative Kylie-Seesaw PaymentPeachcare 2 Portal Login Blue Cross Blue Shi. Chapter 7 Homework Saved Help Save & Exit Submit Check my work 10 Req 1 and 2 Reg 3 Req 4 1.65 Prepare corrected income statements for each quarter. points First Quarter Second Quarter eBook Cost of goods sold: Hint Print References Goods available for sale Cost of goods sold Mc Graw Hill Type here to search Eli a 9:39 PM O 9 3 1/28/20210 X I Homework X Question 10 - Chapter 7 Homewc X + X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.... . .. Apps Kylie School () Kylie Office 365 42 ParentVUE & Kylie Reading ProgroFormative Kylie-Seesaw PaymentPeachcare 2 Portal Login Blue Cross Blue Shi.. Chapter 7 Homework Saved Help Save & Exit Submit Check my work 10 Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 3. Prepare corrected income statements for each quarter. 1.65 4. Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the income statement. points Complete this question by entering your answers in the tabs below. eBook Hint Req 1 and 2 Reg 3 Reg 4 Print Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the income statement. References 1st Quarter 2nd Quarter Incorrect Correct Error Incorrect Correct Error Beginning inventory $ 4,000 $ 4,000 No error Ending inventory 10,000 10,000 No error Cost of goods sold Gross profit Pretax income Mc Graw Hill Type here to search Eli 11 a N 9 0 9:39 PM O A S 1/28/2021