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 Insura policies shows that $1,350 of unexpired i Step 1: Determine what the current account a. Prepaid Insurance. The Prepaid Insurance account has a $5,600 debit balance to sta policies shows that $1,350 of unexpired insurance remains at year-end. DR or $ 5,600 Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. $ 1,350 Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Adjusting Entry Debit unt balance equals. DR or CR? Prepaid insurance $ 5,600 unt balance should equal. $ 1,350 ng entry to get from step 1 to step 2. Debit Credit 4,250 4,250 4,250 Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Adjusting Entry Debit Insurance expense Prepaid insurance COMES 4,250 Prepaid Insurance. The Prepaid Insurance account has a $6,790 debit balance at the sta surance policies shows $1,400 of insurance has expired by year-end. tep 1: Determine what the current account balance equals. tep 2: Determine what the current account balance should equal. tep 3: Record the December 31, adjusting entry to get from step 1 to step 2. rance account has a $6,790 debit balance at the start of the year. A review of surance has expired by year-end. unt balance equals. unt balance should equal. ing entry to get from step 1 to step 2. Prepaid insurance Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. i Saved Help Save & Exit Submit Prepaid Rent. On September 1 of the current year, the company prepaid $34,800 for two ing occupied that day. The company debited Prepaid Rent and credited Cash for $34,800 ep 1: Determine what the current account balance equals. ep 2: Determine what the current account balance should equal. ep 3: Record the December 31, adjusting entry to get from step 1 to step 2. current year, the company prepaid $34,800 for two years of rent for facilities debited Prepaid Rent and credited Cash for $34,800. int balance equals. int balance should equal. ng entry to get from step 1 to step 2. Prepaid rent Determine what the current account balance equals. Determine what the current account balance should equal. Record the December 31, adjusting entry to get from step 1 to step 2. i Saved Help Save & Exit Submit Prepaid Rent. On September 1 of the current year, the company prepaid $34,800 for two ing occupied that day. The company debited Prepaid Rent and credited Cash for $34,800 ep 1: Determine what the current account balance equals. ep 2: Determine what the current account balance should equal. ep 3: Record the December 31, adjusting entry to get from step 1 to step 2