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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company had a building destroyed by fire. The building originally
cost $650,000 and its
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
building and the receipt of cash from the insurance company.
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