Important Note! Before you stort working on this problem, watch the Hint video. This video shows you exactly how to work this problem. 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 56,700 debit balance to start the year. A ceview or linsurance c. Prepaid Rent. On September 1 of the current year, the company prepaid $0,000 for two years of rent for faclities being oectrpied thet day The company debited Prepald Rent and credited Cash for $40.000 c. Prepaid Rent. On September 1 of the current year, the company prepaid 548,000 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and credited Cash for $48,000