For each separate case below. follow the three-step process for adjusting the prepaid asset account at December 31 Step t 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 Prepaid Insurance. The Prepaid Insurance account has a 55,700 debit balance to start the year. A review of Insurance policies shows that $1,400 of unexpired insurance remains at year-end. Prepaid Insurance Step 1: Determine what the current account balance equals. Step z 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 $6,890 debit balance at the start of the year. A review of Insurance policies shows $1,440 of insurance has expired by year-end. Prepaid Insurance 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 c. Prepaid Rent. On September 1 of the current year, the company prepaid $36.000 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $36.000 Prepaid Rent Step 1: Determine what the current account balance equals 1 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