When an organization hires new employees, there may be no more important part of that process than the organizational socialization process. this process takes place over 3 steps or phases;

a. anticipatory socialization—those activities that take place prior to the first day on the job;
b. encounter—where the newcomer learns what the organization is really like; and
c. change and acquisition—where members master important tasks and roles.
d. this process can be achieved through a variety of processes and tactics.
e. this exercise will challenge your understanding of some of the characteristics of these tactics and processes.

For each separate case below, follow the 3-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 $4,700 debit balance to start the year. a re- view 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 debit 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. prepaidrent. onseptember1ofthecurrentyear, thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.