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:

Reconstruction

The period following the Civil War from 1865 to 1877 in the United States, aimed at rebuilding the South and integrating former slaves into society as free citizens.

Education

Education encompasses the process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various methods such as teaching, training, storytelling, discussion, and directed research.

Civil Rights Act of 1866

The first United States federal law to define citizenship and affirm that all citizens are equally protected by the law, passed in the aftermath of the Civil War.

Presidential Veto

The power of the U.S. President to reject a bill passed by Congress, which can be overridden only by a two-thirds majority in both houses.