Use the following information to answer the question below. On January 1, 20x5, 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, 20x5, 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, 20x5
The entry to record the sale of the treasury shares on March 2, 20x5 is
A) Cash 26,000 Common Stock 19,000Retained Earnings 7,000
B) Cash 24,000 Retained Earnings 2,000Treasury Stock, Common 26,000
C) Cash 26,000 Treasury Stock, Common 19,000Gain on Treasury Stock, Common 7,000
D) Cash 26,000 Treasury Stock, Common 19,000Paid-in Capital, Treasury Stock 7,000
D
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