QS 3-5 (Algo) 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. \begin{tabular}{|l|l|l|} \hline Step 1. Determine what the current account balance equals & & \\ \hline Step 2. Determine what the current account balance should equal & Prepaid Insurance \\ \hline Step 3 Record the Decomber 31 adjusting entry to get from step 1 to step 2 & & \\ \hline & & \\ \hline \end{tabular}