Brief Exercise 3-5 On July 1, 2017, Major Co. pays $27,600 to Cruz Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Major Co., journalize and post the entry on July 1 and the annual adjusting entry on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Please see below

Explanation:

Journal to record the Adjusting entry for Major Co payment  to Cruz Insurance

Date      Account                                Debit                      Credit

July 1    Prepaid insurance            $27, 600

                    Cash                                                             $27,600

Date                    Account                    Debit                      Credit

Dec 31      Insurance expense           $4,600

                  Prepaid insurance                                            $4,600

Working : July - december= 6months, insurance contract= 3 years(3x12months =36months )

Insurance expense = $27,600 x  

(6/36)= $4,600

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

answer; at prices that violate government price regulations;