N For each separate case below, follow the three-step process for adjusting the prepaid asset account at December 31, 20 points 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 eBook Hint a. Prepaid Insurance. The Prepaid Insurance account has a $5,400 debit balance to start the year. A review of insurance policies shows that $1,250 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 $6,590 debit balance at the start of the year. A review of insurance policies shows $1,320 of insurance has expired by year-end