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X Company buys back 100 shares of common stock ($2 par value) when the market price is $10. The journal entry to record this transaction

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X Company buys back 100 shares of common stock ($2 par value) when the market price is $10. The journal entry to record this transaction will include: 1. Debit to Retained Earnings for $200. 2. Debit to Cash for $1,000. 3. Credit to Treasury Stock for $200. 4. Debit to Treasury Stock for $1,000 O 1 O 2 03 04

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