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 $5,100 debit balance to start the year. A review of insurance policies shows that $1,100 of unexpired insurance remains at year-end. Step 1: Determine what the current account balance equals DR or CR? $ 5,100 Debit Prepaid Insurance 5,100 4,000 Step 2 Determine what the current account balance should equal $ 1,100 Debit 1.100 Step 3. Record the December 31 adjusting entry to get from step 1 to step 2 p.2. Adjusting Entry Debit Credit Insurance expense 4,000 Prepaid insurance 4.000 b. Prepaid Insurance. The Prepaid Insurance account has a $6,290 debit balance at the start of the year. A review of insurance policies shows $1,200 of insurance has expired by year-end.