Use the Following Information for Questions

Multiple Choice

Use the following information for questions.
Galba Corp.'s shareholders' equity at January 1, 2020 was:
Common shares, no par value; authorized 200,000 shares; During 2020, Galba had the following share transactions:
Acquired 2,000 treasury shares for $ 30,000
Sold 1,200 treasury shares at $ 19 a share
Retired the remaining treasury shares
No other share transactions occurred during 2020.
-Instead, assume Galba cancelled the 2,000 shares when it acquired them for $ 30,000. The journal entry to record the retirement would be

A) Dr. Common Shares, $ 30,000; Cr. Cash, $ 30,000.
B) Dr. Treasury Shares, $ 30,000; Cr. Cash, $ 30,000.
C) Dr. Common Shares, $ 28,000; Dr. Contributed Surplus, $ 2,000; Cr. Cash, $ 30,000.
D) Dr. Common Shares, $ 28,000; Dr. Retained Earnings, $ 2,000; Cr. Cash, $ 30,000.