On January 1, 20xx, Sunshine Corporation had 50,000 shares of $11 par value common stock issued and outstanding. All 50,000 shares had been issued in a prior period at $22 per share. On February 1, 20xx, Sunshine purchased 960 shares of treasury stock for $27 per share and later sold the treasury shares for $21 per share on March 1, 20xx.

Which of the following would be included in the journal entry to record the purchase of the treasury shares on February 1, 20xx?

Select the correct answer

credit to Treasury Stock for $25,920.

credit to a gain account for $4,800.

debit to Treasury Stock for $25,920.

debit to a loss account for $4,800.