2: Correcting Journal Entries vered as part PPar dis no entry is required, enter N/A Be sure to read very carefully when the error was each situation is different. For each situation, prepare the necessary correcting journal entry. I1 a. Coe acquires a five-year insurance policy on January 1 , 2017, pays the entire S500 premium, and debits insurance expense in 2017 for the entire amount. In 2018 after the books for 2 error. Prepare the 2018 entry required when the error is discovered 017 are closed, Coe discovers the CR DR b. Coe Company purchases S2.000 of inventory in 2017 but records the purchase in 2018 when paid. Coe did not include the goods in the 2017 inventory althoug balance was correct in 2018. Prepare the 2018 entry required when the error is discovered. h they were on hand at 12/31/2017. The ending inventory c. On January 1, 2017, Coe pays $500 for ordinary repairs and debits the machinery account. Depreciation is 10% per year and was recorded Prepare the 2018 entry required when the error is discovered. in 2017. Coe discovers the error in 2018 after the books for 2017 are closed