a. Prepaid Insurance. The Propald Insurance account has a $6,500 debit balance to start the year. A review of Insurance policies shows that $1,800 of unexpired Insurance remains at year-end. DR or CR? Prepaid Insurance Step 1: Determine what the current account balance equals. $ 6,500 Debit 6,500 8,300 Step 2: Determine what the current account balance should equal. $ 8,300 Debit 8,300 Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Adjusting Entry Prepaid Insurance Insurance Expense Debit Credit 8,300 8,300 b. Prepaid Insurance. The Prepaid Insurance account has a $7,690 debit balance at the start of the year. A review of Insurance policies shows $1,760 of insurance has expired by year-end. DR or CR? Prepaid Insurance Step 1: Determine what the current account balance equals. $ 7,690 Debit 7,690 Step 2: Determine what the current account balance should equal. $ 5,930 Debit 5,930 Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. + Adjusting Entry Debit Credit Insurance Expense 5,930 Insurance Expense- 5,930 c. Prepaid Rent. On September 1 of the current year, the company prepaid $45,600 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $45,600. Prepaid Rent