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Dalez Corporation prepared the following two statements of earnings for the current year (simplified for...

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Accounting

Dalez Corporation prepared the following two statements of earnings for the current year (simplified for illustrative purposes):
During the third quarter, it was discovered that the ending inventory for the first quarter should have been $4,420.
Required:
What effect did this error have on the pretax earnings of each quarter and of the two quarters combined?
420 Understated
420 Overstated
No error
Did this error affect the earnings per share amounts for each quarter?
Yes
No
[ONLY DO QUESTION 4] Prepare corrected statements of earnings for each quarter.
Set up a schedule with the following headings to reflect the comparative effects of the correct and original amounts on the
statement of earnings: (Select "Understated" or "Overstated" as applicable. Leave no cells blank; select "No error" from the
dropdowns if no error is recognized. Input all amounts as positive values.)
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