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 $5,200 debit balance to start the year. A review of insurance policies shows that $1,150 of unexplred 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 $6,390 debit balance at the start of the year. A review of Insurance policies shows $1,240 of Insurance has expired by year-end. b. Prepald Insurance. The Prepaid Insurance account has 56,300 debit balance at the start of the year. A review of Insurance policies shows 51,240 of insuranco has expired by your and 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. Prepald Rent. On September 1 of the current year, the company prepaid $30,000 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $30,000, 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