Rick Co. purchases 7,000 shares of its own $2 par value common stock for $160 per share. Which of the following is the correct journal entry to record this transaction?

Debit Common Stock - $2 Par Value $2,240,000 and credit Cash $2,240,000.

Debit Cash $2,240,000, and credit Paid-In Capital in Excess of Par Common $2,240,000.

Debit Cash $2,240,000 and credit Treasury Stock Common $2,240,000.

Debit Treasury Stock Common $1,120,000 and credit Cash $1,120,000.