Check my work 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 adusting entries are made during the year Prepaidance. The police account has a $4.700 detit balance to start the year. A review of insurance policies shows 5900 dinance remains a year el Prepaid Insurance Step 1 Demine what the current account balance equals 0 Step 2. Decenine what the current account balance should equal Slap Record the December ng entry to get from step 1 to step 2 cha 5.1. til hence the actolthet Anw.otinta e policies b. Prepold Insurance. The Prepaid Insurance account has a 55,890 debit balance at the start of the year. A review of insurance policies shows 51,040 of insurance has expired by year-end. Prepaid Insurance Step 1: Determine what the current account balance equals. 0 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 e. Prepaid Rent. On September 1 of the current year, the company prepaid $24,000 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $24.000. Prepaid Rent Step 1: Determine what the current account balance equals. 0 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