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)
• \(\begin{array}{l}
• \text { Cash }&26,000\\
• \text { Treasury Stock, Common } && 19,000 \\
• \text { Gain on Treasury Stock, Common } && 7,000
• \end{array}\).