a. Prepaid Insurance. The Prepaid Insurance account has a $5,500 debit balance to start the year. A review of insurance policies shows that $1,300 of unexpired insurance remains at year-end. Prepaid insurance Debit Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Debit Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Insurance oxpense Prepaid insurance b. Prepaid Insurance. The Prepaid Insurance account has a $6,690 debit balance at the start of the year. A review of insurance policies shows $1,360 of insurance has expired by year-end. Prepaid insurance ces Debit Step 1: Determine what the current account balance equals. Debit 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. Insurance expense Prepaid insurance c. Prepaid Rent. On September 1 of the current year, the company prepaid $33,600 for two years of rent for facilities being occupled that day. The company debited Prepaid Rent and credited Cash for $33,600. c. Prepaid Rent. On September 1 of the current year, the company prepaid $33,600 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $33,600. Prepaid rent Step 1: Determine what the current account balance equals. Debit ces Step 2: Determine what the current account balance should equal. Debit Step 3: Record the December 31, adjusting entry to get from step 1 to step 2 Rent expense Prepaid rent