- atate Co... FDOC Spring 201... S70SA%2F%2Fconnect.mheducation.com%2Fpaamweb%2Findex.html%23%2Fregistration 2 Important Docume... Register Pearson Home - Volunteer L e Home-develand Dropbox Folders. Homework (REQ) Save Help 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 Assume no other adjusting entries are made during the year a. Prepaid Insurance. The Prepaid Insurance account has a $4,700 debit balance to and payments shows that $900 of unexpired insurance remains at year-end. t the year. A review of insurance policies 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 stop 2.