Ronald Cummings Purchased 800 Shares of Barnum Corp B) C)

Ronald Cummings purchased 800 shares of Barnum Corp.'s common stock for $15 per share.Barnum Corp.'s shares have a par value of $2.Assume Barnum Corp.declared and issued a 100% stock dividend.Subsequently,Ronald Cummings sold all of his holdings in Barnum Corp.for $9 per share.What journal entry would Ronald Cummings make to record the sale of his shares of the Barnum Corp.?

A) $\begin{array} { l l l } \text { Cash } & & 7,200 \\\text { Loss on Sale } & 4,800 & \\\quad \text { Investment in Eamun Corp. } & & 12,000 \\\end{array}$

B) $\begin{array}{lccc}\text { Cash } & 7,200 & \\\text { Unrealized Gain } & 4,800 & \\\quad \text { Investment in Earnum Corp. } & & 12,000 \\\end{array}$

C) $\begin{array}{lccc}\text { Cash } & 14,400 & \\\quad \text { Gain on Sale } & & 2,400 \\\quad \text { Investmentin Earnum Corp. } & & 12,000 \\\end{array}$

D) $\begin{array}{lccc}\text { Cash } & 14,400 & \\\text { Losson Sale } & 9,600 & \\\quad \text { Investment in Earnum Corp. } & & 24,000 \\\end{array}$

E) $\begin{array}{lccc}\text { Cash } & 14,400 & \\\text { Unrealized Gain } & 4,800 & \\\quad \text { Investment in Earnum Corp. } & & 12,000 \\\text { Gain on Sale } & & 7,200\end{array}$