a. Prepaid Insurance. The Prepaid Insurance account has a $5,800 debit balance to start the year. A review of insurance policies shows that $1.450 of unexpired Insurance remains at 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 b. Prepaid Insurance. The Prepaid Insurance account has a $6.990 debit balance at the state of the year. A review of insurance policies shows 51,480 of insurance has expired by 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 top 1 to stop 2 c. Prepaid Rent. On September 1 of the current year, the company prepaid 337,200 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $37,200 MacBook Air D 23 36 5 B 7 2 3 6 8 9 3 E R T Y Y U o S D F G H . J K