Answer is complete but not entirely correct.

a$.$ Prepaid Insurance. The Prepaid Insurance account has a $$6,400$ debit balance to start the year. A review of insurance policies shows that $$1,750$ of unexpired insurance remains at year$-$end.

Debit or Credit? Prepaid Insurance

Step $1$: Determine what the current account balance equals. $$6,700$selected answer incorrect Debitselected answer correct $6,700$

$4,800$

Step $2$: Determine what the current account balance should equal. $$1,900$selected answer incorrect Debitselected answer correct $1,900$

Step $3$: Record the December $31$ adjusting entry to get from step $1$ to step $2.$

Adjusting Entry Debit Credit

Insurance expenseselected answer correct $4,800$selected answer incorrect

Prepaid insuranceselected answer correct $4,800$selected answer incorrect

b$.$ Prepaid Insurance. The Prepaid Insurance account has a $$7,590$ debit balance at the start of the year. A review of insurance policies shows $$1,720$ of insurance has expired by year$-$end.

Debit or Credit? Prepaid Insurance

Step $1$: Determine what the current account balance equals. $$7,890$selected answer incorrect Debitselected answer correct $7,890$

$1,840$

Step $2$: Determine what the current account balance should equal. $$6,050$selected answer incorrect Debitselected answer correct $6,050$

Step $3$: Record the December $31$ adjusting entry to get from step $1$ to step $2.$

Adjusting Entry Debit Credit

Insurance expenseselected answer correct $1,840$selected answer incorrect

Prepaid insuranceselected answer correct $1,840$selected answer incorrect

c$.$ Prepaid Rent. On September $1$ of the current year, the company prepaid $$44,400$ for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $$44,400.$

Debit or Credit? Prepaid Rent

Step $1$: Determine what the current account balance equals. $$48,000$selected answer incorrect Debitselected answer correct $48,000$

$8,000$

Step $2$: Determine what the current account balance should equal. $$40,000$selected answer incorrect Debitselected answer correct $40,000$

Step $3$: Record the December $31$ adjusting entry to get from step $1$ to step $2.$

Adjusting Entry Debit Credit

Rent expenseselected answer correct $8,000$selected answer incorrect

Prepaid rentselected answer correct $8,000$selected answer incorrect