Use the Following Information to Answer the Question Below

question 148

Multiple Choice

Use the following information to answer the question below. On January 1,2013,Falcon Corporation had 40,000 shares of $10 par value common stock issued and outstanding.All 40,000 shares had been issued in a prior period at $17 per share.On February 1,2013,Falcon purchased 1,000 shares of treasury stock for $19 per share and later sold the treasury shares for $26 per share on March 2,2013.
The entry to record the sale of the treasury shares on March 2,2013 is:

• A) Cash 26,000
• Common Stock 19,000
• Retained Earnings 7,000
• B) Cash 24,000
• Retained Earnings 2,000
• Treasury Stock,Common 26,000
• C) Cash 26,000
• Treasury Stock,Common 19,000
• Gain on Treasury Stock,Common 7,000
• D) Cash 26,000
• Treasury Stock,Common 19,000
• Paid-in Capital,Treasury Stock 7,000

---

Definitions:

Star Athletes

Highly talented and popular sports persons who significantly influence their teams and often have a large fanbase.

Decision Maker

An individual or group responsible for making choices after considering the consequences of various actions.

Irrational

Behavior or thoughts not based on logical reasoning, clear thinking, or aligned with factual evidence.

Economic Models

Simplified frameworks used to illustrate economic processes or theories through mathematical equations or diagrams.