b. Prepaid Insurance. The Prepaid Insurance account has a $5,890 debit balance at the start the year. A review of insurance policies and payments shows $1,040 of insurance has expired 0s year-end. c. Prepaid Rent. On September I of the current year, the company prepaid $24,000 for two years of efor for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $24,000. For each separate case below, follow the three-step process for adjusting the supplies 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 to step 2. Assume no other adjusting entries are made during the year. QS 3-6 Prepaid (deferred) expenses adjustments P1 a. Supplies. The Supplies account has a $300 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $110 of supplies remaining- b. Supplies. The Supplies account has an $800 debit balance to start the year. Supplies of $2,100 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $650 of supplies remaining. C. Supplies. The Supplies account has a $4,000 debit balance to start the year. During the current year, supplies of $9,400 were purchased and debited to the Supplies account. The inventory of supplies available at December 31 totaled $2,660