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.

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Definitions:

Field

A component of a database table that holds individual pieces of data, serving as the smallest unit of data storage, like an email address or ID number, in a structured format.

Short Text

A data type in databases used for fields that contain text or combinations of text and numbers, restricted by a maximum length.

Required

A constraint in databases or programming that specifies a field must have a value and cannot be left blank.

Validation Rule

A criterion or set of criteria set within a database or software application that must be met before data is accepted or saved.