On August 1, 2014, Amherst Company reacquired 4,000 shares of its $15 par value common stock for $18 per share. Amherst uses the cost method to account for treasury stock. What journal entry should Amhurst make to record the acquisition of treasury stock?

On August 1, 2014, Amherst Company reacquired 4,000 shares of its $15 par value common stock for $18 per share. Amherst uses the cost method to account for treasury stock. What journal entry should Amhurst make to record the acquisition of treasury stock?

A debit to Treasury stock for $60,000 and a debit to APIC for $12,000. A credit to Cash for $72,000

A debit to Retained Earnings for $72,000 and a redit to cash for $72,000

debit to Treasury stock for $72,000 and a credit to cash for $72,000

A debit to Treasury Stock for $60,000 and a debit to Retained Earnings for $12,000. A credit to Cash for $72,000