Cherokee Company's auditor discovered some errors. No errors were corrected during 2020. The errors are described as follows:

1. (1) Beginning inventory on January 1, 2020, was understated by $5,000.

2. (2) A two-year insurance policy purchased on April 30, 2020, in the amount of $19,200 was debited to Prepaid Insurance. No adjustment was made on December 31, 2020, or on December 31, 2021.

Required: Prepare appropriate journal entries (assume the 2021 books have not been closed). Ignore income taxes.