Question 20 Swage Corporation is authorized to issue 2 million shares of $1 par value common stock. During 2020 the company purchased 1,000 shares of common stock for the treasury at $7 per share. Prepare the required journal entry.

a. (Dr.) Treasury Stock 7,000 (Cr.) Cash 7,000 b. (Dr.) Common Stock 7,000 (Cr.) Cash 7,000 c. (Dr.) Common Stock 1,000 (Cr.) Cash 1,000 d. (Dr.) Treasury Stock 1,000 (Cr.) Cash 1,000