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Aye Company's Computer Was Destroyed by Fire

question 166

Essay

Aye Company's computer was destroyed by fire.The computer originally cost $5,000,and accumulated depreciation to the date of the fire was $900.The company received $2,000 from an insurance policy that covered the computer and will use that money to help pay for a new computer.Prepare the general journal entry to record the loss of the computer and the receipt of cash from the insurance company.


Definitions:

Emotionally Stable

A psychological state in which an individual can manage their emotions and remain calm and composed under stress.

Introverted

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation.

Research

Research is the systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Personality Theory

A system of concepts and assumptions that explain the divergence of individuals' psychological traits, patterns of thought, and behaviors.

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