At the end of the annual reporting period, December 31, 2013, LTX had the accounting situations given below under consideration for adjusting entries. Give the appropriate adjusting entry for each situation. Assume straight-line amortization in all cases. If an adjusting entry is not needed, explain why.
Situation A-A patent that cost $51,000 has been amortized for six years on the basis of a 17-year life. Now, it is estimated that the total life should have been estimated at 12 years.
Situation B-The balance in the prepaid insurance account on January 1, 2013, was $4,000. On June 1, 2013, a new 3-year insurance premium of $36,000 was paid because the old policy expired. The new premium was recorded in the Prepaid Insurance Account (current asset).

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The Answer of At the end of the annual reporting period, December 31, 2013, LTX had the accounting situations given below under consideration for adjusting entries. Give the appropriate adjusting entry for each situation. Assume straight-line amortization in all cases. If an adjusting entry is not needed, explain why.
Situation A-A patent that cost $51,000 has been amortized for six years on the basis of a 17-year life. Now, it is estimated that the total life should have been estimated at 12 years.
Situation B-The balance in the prepaid insurance account on January 1, 2013, was $4,000. On June 1, 2013, a new 3-year insurance premium of $36,000 was paid because the old policy expired. The new premium was recorded in the Prepaid Insurance Account (current asset).

At the End of the Annual Reporting Period, December 31