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 1, 2017, was understated by $5,000. (2.) A two-year insurance policy purchased on April 30, 2017, in the amount of $20,400 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.) Beginning inventory on January 1, 2017, was understated by $5,000. A two-year insurance policy purchased on April 30, 2017, in the amount of $20,400 was debited to Prepaid Insurance. No adjustment was made on December 31, 2017, or on December 31, 2018.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Cherokee Company's auditor discovered some errors. No errors were corrected during 2 0 2 3 . The errors are described as follows: Beginning inventory on January 1 , 2 0 2 3 , was understated by $ 5 ,...

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...

Cherokee Company's auditor discovered some errors. No errors were corrected during 2 0 2 3 . The errors are described as follows: Beginning Inventory on January 1 , 2 0 2 3 , was understated by $ 5 ,...

Etna Company's auditor discovered some errors. No errors were corrected during 2 0 2 0 . The errors are described as follows: Beginning inventory on January 1 , 2 0 2 0 , was understated by $ 5 , 0 0...

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 ....

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....

The yearly home run totals for Babe Ruth during his career as a New York Yankee are as follows ( the totals are arranged in increasing order): 22, 25, 34, 35, 41, 41, 46, 46, 46, 47, 49, 54, 54, 59,...

Recently, the Islamic insurance industry experienced continued strong double-digit growth. In this challenging global economic climate, players are struggling to generate shareholder returns....

A project with a life of 11 has an initial fixed asset investment of $35,280, an initial NWC investment of $3,360, and an annual OCF of $53,760. The fixed asset is fully depreciated over the life of...

5. Develop a scenario comparing two PH programs and involving the use of a CBA.

1. How have the origins of the study of intercultural communication in the United States affected its present focus?

7. Identify six intercultural communication dialectics.

3. How have the worldviews of researchers influenced how they studied intercultural communication?