Insurance Prepaid Insurance 1,520 1 of the current year, the company prepaid $38,400 for 2 years of rent for facilities being occupied day. The company debited Prepaid Rent and credited Cash for $38-400 Prepaid Rent 38,400 DR or CR? 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 S 38.400 6,800 Adjusting Entry Debit Credit eBook & Resources Type here to search