Use the Following Information to Answer the Question Below $\begin{array} { l r } \text { Cash } & 26,000 \\\text { Common Stock } && 19,000 \\\text { Retained Earnings } && 7,000\end{array}$

question 150

Multiple Choice

Use the following information to answer the question below. On January 1,2009,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 1,2009,Falcon purchased 1,000 shares of treasury stock for $19 per share and later sold the treasury shares for $26 per share on March 2,2009.
The entry to record the sale of the treasury shares on March 2,2009 is:

• A)
• \(\begin{array} { l r }
• \text { Cash } & 26,000 \\
• \text { Common Stock } && 19,000 \\
• \text { Retained Earnings } && 7,000
• \end{array}\)
• B)
• \(\begin{array} { l c c }
• \text { Cash } & 24,000 & \\
• \text { Retained Earnings } & 2,000 & \\
• \text { Treasury Stock, Common } & & 26,000
• \end{array}\)
• C)
• \(\begin{array}{l}
• \text { Cash }&26,000\\
• \text { Treasury Stock, Common } && 19,000 \\
• \text { Gain on Treasury Stock, Common } && 7,000
• \end{array}\)
• D)
• \(\begin{array}{l}
• \text { Cash }&26,000\\
• \text { Treasury Stock, Common } && 19,000 \\
• \text { Gain on Treasury Stock, Common } && 7,000
• \end{array}\).

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Definitions:

Effective Delivery

Executing a task, presentation, or performance in a manner that successfully achieves its intended purpose or objectives.

Onscreen Journal

An electronic or digital journal displayed on a computer screen, used for recording accounting transactions.

Adjusting Entries

Journal entries used to adjust account balances in order to reflect more accurate financial information at the end of an accounting period.

Journal Entry

A record in accounting that notes a specific financial transaction in the books.