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

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