=+EX 3-6 Adjusting entries for prepaid insurance obj. 2 The prepaid insurance account had a balance of $5,400 at the beginning of the year. The account was debited for $6,000 for premiums on policies purchased during the year. Journalize the adjusting entry required at the end of the year for each of the following situations:

(a) the amount of unexpired insurance applicable to future periods is $1,000;

(b) the amount of insurance expired during the year is

$10,400.