The next 3 questions use the same information: (Transaction 1) the company purchases 10,000 shares of Treasury Stock for $40 per share; (Transaction 2) the company sells 5,000 shares of Treasury stock for $50 per share; and (Transaction 3) the company sells the remaining 5,000 shares of Treasury Stock for $20 per share. The journal entry to record Transaction #1 is: Debit Treasury Stock, Credit Cash Debit Retained Earnings, Credit Cash Debit Cash, Credit Treasury Stock Debit Paid in Capital from Treasury Stock, Credit Cash Based on the following 3 transactions: (Transaction 1) the company purchases 10,000 shares of Treasury Stock for $40 per share; (Transaction 2) the company sells 5,000 shares of Treasury stock for $50 per share; and (Transaction 3 ) the company sells the remaining 5,000 shares of Treasury Stock for $20 per share. The journal entry to record Transaction #2 is: None of the other answers are correct Debit Cash, Credit Retained Earnings Debit Cash, Credit Treasury Stock and Paid in Capital form Treasury Stock Debit Treasury Stock, Credit Cash Based on the following 3 transactions: (Transaction 1) the company purchases 10,000 shares of Treasury Stock for $40 per share; (Transaction 2 ) the company sells 5,000 shares of Treasury stock for $50 per share; and (Transaction 3) the company sells the remaining 5,000 shares of Treasury Stock for $20 per share. The journal entry to record Transaction #3 includes what entry to Retained Earnings: Debit of $50,000 Retained Earnings is not affected by this transaction Credit of $100,000 Credit of $50,000