a. Prepaid Insurance. The Prepaid Insurance account has a 56,000 debit balance to start the year. A review of insurance policies shows that $1,550 of unexplred insurance remains at year and Prepaid Insurance 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 to step 2 b. Prepaid Insurance. The Prepaid Insurance account has a 57,190 debit balance at the start of the year. A review of insurance policies shows 51,560 of insurance has expired by year-end. Prepaid Insurance 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 c. Prepaid Rent. On September 1 of the current year, the company prepaid $39.600 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $39,600. Prepaid Rent 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