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 Prepaid Insurance. The Prepaid Insurance account has a $5,100 debit balance to start the year. A review of surance policies and payments shows that $1,100 of unexpired insurance remains at year-end. Prepaid Insurance 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 Prepaid Insurance. The Prepaid Insurance account has a $6,290 debit balance at the start of the year. A review of insurance policies and payments shows $1,200 of insurance has expired by year-end. Prepaid Insurance 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 step2 c. Prepaid Rent. On September 1 of the current year, the company prepaid $28,800 for two years of rent for acilities being occupied that day. The company debited Prepaid Rent and credited Cash for $28,800 Prepaid Rent 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