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 $6,100 debit balance to start the year. A review of insurance policies and payments shows that $1,600 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 b. Prepaid Insurance. The Prepaid Insurance account has a $7.290 debit balance at the start of the year. A review of insurance policies and payments shows $1.600 of insurance has expired by vear-end.