The Vernon Corporation was formed on January 2, 2018. The company sold 20,000 shares of $8.00 par value stock for $20.00 per share. On July 1, 2018, Vernon bought back 4,000 shares of stock for $24.00 per share. The treasury stock was resold on September 1, 2018 for $32.00 per share. Which one of the following is the correct entry to record when Vernon acquires its shares to hold as treasury stock?

Multiple Choice

DR Treasury stock 96,000 CR Cash 96,000

DR Investments 96,000 CR Cash 96,000

DR Common stock 96,000 CR Cash 96,000

DR Retained earnings 96,000 CR Cash 96,000