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.)