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 $$6,300$ debit balance to start the year. A review of insurance policies shows that $$1,700$ of unexpired insurance remains at year$-$end.

ences

$\backslash$table$[[$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 $$7,490$ debit balance at the start of the year. A review of insurance policies shows $$1,680$ of insurance has expired by year$-$end.