1. Business
  2. Accounting
  3. for each separate case below follow the threestep process for...

Question: for each separate case below follow the threestep process for...

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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 ssume no other edjusting entries are made during the year Prepaid Insurance. The Prepaid Insurance account has a $5,500 debit balance to start the year. A review of insurance policies and payments shows that $1,300 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.

Prepaid Insurance. The Prepaid Insurance account has a $6,690 debit balance at the start of the year. A review of insurance policies and payments shows $1,360 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. Prepaid Rent. On September 1 of the current year, the company prepaid $33,600 for two years of rent for facilities being ccupied that day. The company debited Prepaid Rent and credited Cash for $33,600 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.

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