26. (10 min.)                                                                          

     (a) 2,000,000 shares are authorized.

     (b) 1,200,000 shares were issued.

     (c) 1,175,000 shares are outstanding (1,200,000 issued less 25,000

         in treasury).

     (d) The balance of the Common Stock account is $1,200,000

         ($1 x 1,200,000 shares = $1,200,000).

     (e) The balance of the Treasury Stock account is $625,000

         ($25 x 25,000 shares = $625,000).