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 $5,000 debit balance to start the year. A review of insurance policies shows that $1,050 of unexpired insurance remains at year-end.
		DR or CR?	Prepaid Insurance
Step 1: Determine what the current account balance equals.	$5,000	Debit	5,000
				3,950
Step 2: Determine what the current account balance should equal.	$1,050	Debit	1,050
Step 3: Record the December 31, adjusting entry to get from step 1 to step 2.
Adjusting Entry	Debit	Credit
Insurance Expense	3,950
Prepaid Insurance		3,950
b. Prepaid Insurance. The Prepaid Insurance account has a $6,190 debit balance at the start of the year. A review of insurance policies shows $1,160 of insurance has expired by year-end.
		DR or CR?	Prepaid Insurance
Step 1: Determine what the current account balance equals.	$6,190	Debit	6,190
				1,160
Step 2: Determine what the current account balance should equal.	$5,030	Debit	5,030
Step 3: Record the December 31, adjusting entry to get from step 1 to step 2.
Adjusting Entry	Debit	Credit
Insurance Expense	1,160
Prepaid Insurance		1,160
c. Prepaid Rent. On September 1 of the current year, the company prepaid $27,600 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $27,600.
		DR or CR?	Prepaid Rent
Step 1: Determine what the current account balance equals.	$27,600	Debit	27,600
Step 2: Determine what the current account balance should equal.	?	Debit	27,600
Step 3: Record the December 31, adjusting entry to get from step 1 to step 2.
Adjusting Entry	Debit	Credit
Rent Expense	?
Prepaid Rent		?