Question: Cherokee Company's auditor discovered some errors. No errors were corrected during 2017. The errors are described as follows: (1.) Beginning inventory on January 1, 2017,

Cherokee Company's auditor discovered some errors. No errors were corrected during 2017. The errors are described as follows: (1.) Beginning inventory on January

Cherokee Company's auditor discovered some errors. No errors were corrected during 2017. The errors are described as follows: (1.) Beginning inventory on January 1, 2017, was understated by $5,000. (2.) A two-year insurance policy purchased on April 30, 2017, in the amount of $21,000 was debited to Prepaid Insurance. No adjustment was made on December 31, 2017, or on December 31, 2018. Required: Prepare appropriate journal entries (assume the 2018 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.) View transaction list Journal entry worksheet Beginning inventory on January 1, 2017, was understated by $5,000. Note: Enter debits before credits. General Journal Debit Credit Transaction (1) Record entry Clear entry View general journal Journal entry worksheet A two-year insurance policy purchased on April 30, 2017, in the amount of $21,000 was debited to Prepaid Insurance. No adjustment was made on December 31, 2017, or on December 31, 2018. Note: Enter debits before credits. General Journal Debit Credit Transaction (2) Record entry Clear entry View general journal

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