Final answer:
To record the purchase of 6,000 shares of its own common stock for $20 cash per share, the company would debit the treasury stock account for $120,000 and credit the cash account for the same amount.
Step-by-step explanation:
When recording the purchase of 6,000 shares of its own common stock for $20 cash per share, you would debit the treasury stock account for $120,000 (6,000 shares x $20 per share) and credit the cash account for the same amount. This transaction represents the company buying back its own shares, which reduces the number of outstanding shares in the market. It is a common practice used by companies to reinvest in themselves and signal confidence in their own stock.