For each separate case below, follow the three-step process for adjusting the prepaid asset account at December 31 _ 

Step 1.
Determine what the current account balance equals. 

Step 2:
Determine what the current account balance should equal. 

Step 3:
Record the December 31 adjusting entry to get from step 1 to step 2

a. Prepaid Insurance. The Prepaid Insurance account has a $4,700 debit balance to staff the year. A review of insurance policies shows that $900 of unexpired Insurance remains at year-end.

b. Prepaid Insurance. The Prepaid Insurance account has a $5,890 debit balance at the staff of the year. A review of Insurance policies show's $1,040 of insurance has expired by year-end.

c. Prepaid Rent. On September 1 of the current year, the company prepaid $24,000 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $24,000.