Duke Corporation Reports the Following Components of Stockholders' Equity on December

Multiple Choice

Duke Corporation reports the following components of stockholders' equity on December 31,2010.
$\begin{array}{lr} \text {Common stock- \( \$ 25 \) par value, 100,000 shares authorized, 45,000 shares issued}\\ \text { and outstandino}&\$1,125,000\\ \text { Paid-in capital in excess of par value, common stock } & 60,000 \\ \text { Retained earnings } & 460,000 \\ \text { Total stockholders' equity } & \$ 1,645,000 \\\end{array}$

In year 2011,the following transactions affected its stockholders' equity accounts.
Jan. 1 Purchased 4,500 shares of its own stock at $\$ 27$ cash per share.
Jan. 5 Directors declared a $\$ 3$ per share cash dividend payable on Feb. 28 to the Feb. stockholders of record.

Feb. 28 Paid the dividend declared on January 5.
Mar. 3 Sold 1,000 shares of treasury stock for $\$ 28$ per share

What is the journal entry required for the March 3^rd transaction?

A)
$$\begin{array} { |l| r | r | } \hline \text { Cash } & 28,000 & \\\hline \text { Treasury Stock } & & 25,000 \\\hline \text { Paid in Capital, Treasury Stock } & & 3,000 \\\hline\end{array}$$
B)
$\begin{array}{|l|r|r|}\hline \text { Cash } & 28,000 & \\\hline \text { Treasury Stock } & & 28,000 \\\hline\end{array}$
C)
$$\begin{array} { |l | r | r | } \hline \text { Cash } & 28,000 & \\\hline \text { Treasury Stock } & & 27,000 \\\hline \text { Paid in Capital, Treasury Stock } & & 1,000 \\\hline\end{array}$$
D)
$$\begin{array} { | l | r | r | } \hline \text { Cash } & 28,000 & \\\hline \text { Common Stock } & & 25,000 \\\hline \text { Paid in Capital, Common Stock } & & 3,000 \\\hline\end{array}$$
E)
$$\begin{array} { | l | r | r | } \hline \text { Cash } & 28,000 & \\\hline \text { Retained Earnings } & &2 8 , 0 0 0 \\\hline\end{array}$$