Final answer:
The transaction involves an increase in Accounts Receivable, a decrease in Cash, and an increase in Equipment.
Step-by-step explanation:
The transaction described in the general journal entry involves the following:
- An increase in Accounts Receivable by $35,000, which represents the amount owed to the company by its customers.
- A decrease in Cash by $21,000, which represents the amount of money the company received.
- An increase in Equipment by $56,000, which represents the purchase of new equipment for the company.
The complete question is:
The following entry appears in Martin Supply's general journal on March 10, 2010:
Accounts Receivable...................... 35,000
Cash............................................... 21,000
Equipment.......................... 56,000
This transaction involves:
O Martin's collection of $30,000 on an account receivable
O payment of $21,000 cash by Martin
O a $21.,000 overall increase in Martin's assets
O sale of equipment by Martin for $51.000