Use the Following Information for Questions

Use the following information for questions.
Galba Corp.'s shareholders' equity at January 1, 2017 was:
Common shares, no par value; authorized 200,000 shares; During 2017, Galba had the following share transactions:
Acquired 2,000 treasury shares for $90,000
Sold 1,200 treasury shares at $50 a share
Retired the remaining treasury shares
No other share transactions occurred during 2017.
-Instead, assume Galba cancelled the 2,000 shares when it acquired them for $90,000.The journal entry to record the retirement would be

A) Dr.Common Shares, $90,000; Cr.Cash, $90,000.
B) Dr.Treasury Shares, $90,000; Cr.Cash, $90,000.
C) Dr.Common Shares, $28,000; Dr.Contributed Surplus, $62,000; Cr.Cash, $90,000.
D) Dr.Common Shares, $28,000; Dr.Retained Earnings, $62,000; Cr.Cash, $90,000.