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. Prepaid insurance. The Prepaid insurance account has a $5,300 debit balance to start the year. A review of insurance policies shows that $1,200 of unexpired insurance remains at year-end, Prepaid Insurance Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. I Step 3: Record the December 31, adjusting entry to get from step 1 to step 2 a. Prepaid Insurance. The Prepaid Insurance account has a $5,300 debit balance to start the year. A review of insurance policies shows that $1,200 of unexpired insurance remains at 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 b. Prepaid Insurance. The Prepaid Insurance account has a $6.490 debit balance at the start of the year. A review of insurance policies shows $1,280 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 $31,200 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $31,200. Prepaid Rent 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 N