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. a. Prepaid Insurance. The Prepaid Insurance account has a $5,900 debit balance to start the year. A review of insurance policies shows that $1,500 of unexpired Insurance remains at year-end. Step 1: Determine what the current account balance equals. Prepaid Insurance 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 $7,090 debit balance at the start of the year. A review of insurance policies shows 51,520 of insurance has expired by year-end. Step 1: Determine what the current account balance equals Prepaid Insurance 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 For each separate case, record the necessary adjusting entry. Check a. On July 1, Lopez Company paid $3,100 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31 b. Zim Company has a Supplies account balance of $8,800 at the beginning of the year. During the year, it purchases $3.900 of supplies. As of December 31, a physical count of supplies shows $1750 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31 Book View transaction list Hint Journal entry worksheet Ask 1 2 > Record year-end adjusting entry to reflect expiration of the insurance as of December 31. erences Note: Enter debits before credits Transaction General Journal Debit Credit