Question & Answer: For cach separate case below, follow the three-step process tfor adjusting the prepaid asset account at December 31. Step : Determine what the curr…..

For cach separate case below, follow the three-step process tfor adjusting the prepaid asset account at December 31. Step : Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 3 adjusting entry to get from step l to step 2. Assue no other adjusting entries are made during the year a. Prepaid Insurance. The Prepaid Insurance account has a $4,700e balance to start the year. A review of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. Prepaid Insurance. The Prepaid Insurance account has a $5,890 debi balance at the start of the year. A review of insurance policies and payments shows $1,040 of insurance has expired by year-end c. Prepaid Rent. On September 1 of the current year, the company prepaid $24,000 for two years of rent for facilities being occupied that day. The company debied Prepaid Rent and credited Cash for $24,000 For each separate case below, follow the three-step process for adjusting the supplies asset account at December 31. Step : Determinc what the current account balance equals. Step 2: Determine what the currnt account balanse should cqual. Step 3: Record the December 31 adjusting entry to get from step I