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 $6,000 debit balance to start the year. A review of insurance policies shows that $1,550 of unexpired insurance remains at year-end. c. Prepaid Rent. On September 1 of the current year, the company prepaid $39,600 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $39,600. \begin{tabular}{|l|l|l|l|} \hline & & & \multicolumn{2}{|c|}{ Prepaid Rent } \\ \cline { 1 - 2 } & & & \\ \hline Step 1: Determine what the current account balance equals. & & & \\ \hline Step 2: Determine what the current account balance should equal. & & & \\ \hline & & & \\ \hline Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}