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 55,700 debit balance to start the year. A review of insurance policies shows that $1.400 of unexpired Insurance remains at year-end. Step 1: Determine what the current account balance equals Prepaid insurance Step 2 Determine what the current account balance should equal Step 3: Record me December 31, adjusting entry to get from ep 1 to step 2 Prepaid Insurance. The Prepaid Insurance account has 16.890 debit balance at the start of the year. A review of Insurance policies shows 51446 of insurance has expired by year and Str 1 Determine what the current count be Prepaid insurance Step 2 Domine what the current account balance shot op 3 Record the December in try to get from o 1o e 2 Saved Step 3: Record the December 31, adjusting entry to get from step 1 to step 2 76 b. Prepaid Insurance. The Prepaid Insurance account has a $6,890 debit balance at the start of the year. A review of Insurance policies shows $1.440 of insurance has expired by year-end. & 01001 Step 1: Determine what the current account balance equais. Prepaid insurance 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 6. Prepaid Rent. On September 1 of the current year, the company prepaid $36.000 for two years of rent for facilities being occupled that day. The company debited Prepaid Rent and credited Cash for $36,000 Step 1: Determine what the current account balance equal Prepaid rent Step 2: Determine what the current account balance should equal Step 3: Record the December 31, adjusting entry to get from stup 1 op 2