Question: Cherokee Company's auditor discovered some errors. No errors were corrected during 2015. The errors are described as follows: Beginning inventory on January 1, 2015, was

Cherokee Company's auditor discovered some errors. No errors were corrected during

Cherokee Company's auditor discovered some errors. No errors were corrected during 2015. The errors are described as follows: Beginning inventory on January 1, 2015, was understated by $5,000. A two-year insurance policy purchased on April 30, 2015, in the amount of $30,000 was debited to Prepaid Insurance. No adjustment was made on December 31, 2015, or on December 31, 2016. Prepare appropriate journal entries (assume the 2016 books have not been closed). Ignore income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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