Please help me finish 'c' (the second photo). I can't figure out how to get the answer to Step 2 as well as the adjusting entries.

QS 3-5 Prepaid (deferred) expenses adjustments LO P1 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 $4,700 debit balance to start the year. A review of insurance policies and payments shows that $900 of unexpired Insurance remains at year-end. DR or CR? Prepaid Insurance Step 1: Determine what the current account balance equals. 4,700 3,800 Step 2: Determine what the current account balance should equal. $ $ 900 Credit Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Adjusting Entry Insurance Expense Prepaid Insurance Debit 3,800 3,800 b. Prepaid Insurance. The Prepaid Insurance account has a $5,890 debit balance at the start of the year. A review of insurance policies and payments shows $1,040 of insurance has expired by year-end. DR or CR? 5,890 Prepaid Insurance Step 1: Determine what the current account balance equals. $ 1,040 Step 2: Determine what the current account balance should equal. $ 4,850 Debit Credit Step 3: Record the December 31, adjusting entry to get from step 1 to stop 2. Adjusting Entry Insurance Expense Prepaid Insurance 1,040 1,040 c. Prepaid Rent. On September 1 of the current year, the company prepaid $24,000 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $24,000. Prepaid Rent Step 1: Determine what the current account balance equals. DR or CR? 24,000 $ 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. Rent Expense Prepaid Rent