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A Company Had a Building Destroyed by Fire

question 163

Essay

A company had a building destroyed by fire. The building originally cost $650,000, and its accumulated depreciation as of the date of the fire was $300,000. The company received $400,000 cash from an insurance policy that covered the building and will use that money to help rebuild. Prepare the single journal entry to record the destruction of the building and the receipt of cash from the insurance company.


Definitions:

Harmony-and-Light Speech

Expression aimed at promoting peace, positivity, and understanding among people, often used in conflict resolution or diplomatic settings.

Constituency

The group of individuals or the demographic that is represented or served by a specific leader or organization.

Genuine Tactic

A strategy or maneuver that is sincere and not intended to deceive, used in various contexts such as negotiations or personal interactions.

Bystanders

Individuals who are present at an event or situation but do not take an active role.

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