Cherokee Company's auditor discovered some errors. No errors were corrected during 2017. The errors are described as follows:

5. Beginning inventory on January 1, 2017, was understated by $5,000.

6. A two-year insurance policy purchased on April 30, 2017, in the amount of $24,000 was debited to Prepaid Insurance. No adjustment was made on December 31,

2017, or on December 31, 2018.

7. Merchandise costing $4,000 was sold to a customer for $9,000 on December 31, 2017, but it was recorded as a sale on January 2,

2018. The merchandise was properly excluded from the 2017 ending inventory. Assume the periodic inventory system is used.

8. (10 points) A machine with a five-year life was purchased on January 1, 2017. The machine cost $20,000 and has no expected salvage value. No depreciation was taken in

2017 or 2018. Assume the straight-line method for depreciation.

Required:

Prepare appropriate journal entries (assume the 2018 books have not been closed) for each of the errors. Ignore income taxes.