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 $$4,900$ debit balance to start the year. A review of insurance

policies shows that $$1,000$ of unexpired insurance remains at year$-$end.

b$.$ Prepaid Insurance. The Prepaid Insurance account has a $$6,090$ debit balance at the start of the year. A review of insurance

policies shows $$1,120$ of insurance has expired by year$-$end.