For each separate case below, follow the three$-$step process for adjusting the prepaid asset accou

December $31.$ Assume no other adjusting entries are made during the year.

Prepaid Insurance. The Prepaid Insurance account has a $$5,000$ debit balance to start the year,

no insurance payments were made during the year. A review of insurance policies shows that $$1,00$

unexpired insurance remains at its December $31$ year$-$end.

Prepaid Rent. On October $1$ of the current year, the company prepaid $$12,000$ for one year of ren

facilities being occupied from that day forward. The company debited Prepaid Rent and credited

for $$12,000.$ December $31$ year$-$end statements must be prepared.

Supplies. The Supplies account has a $$1,000$ debit balance to start the year. Stupplies of $$2,000$

purchased during the current year and debited to the Supplies account. A December $31$ physical c

shows $$500$ of supplies remaining.

Accumulated Depreciation. The company has only one fixed asset $($equipment$)$ that it purchasec

the start of this year. That asset had cost $$38,000,$ had an estimated life of $10$ years, and is expectec

be valued at $$8,000$ at the end of the $10-$year life. December $31$ year$-$end statements must be prepar