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.