An examination of the Prepaid Insurance account shows a balance of 4,112 at the end of an Prepaid Insurance accounting period, before adjustment. Prepare journal entries to record the insurance expense for the period under each of the following independent assumptions:

1. An examination of the insurance policies shows unexpired insurance that cost 1,974 at the end of the period.

2. An examination of the insurance policies shows that insurance that cost 694 has expired during the period.