Disposition of Treasury Stock Chirac Company bought 10,000 of its own shares for $10 per share. The shares were held as treasury stock. This was the only time Chirac had ever purchased treasury stock. 1. Chirac sold 5,000 of the shares for $12 per share. Prepare the journal entry. 2. Chirac sold the remaining 5,000 shares later for $9 per share. Prepare the journal entry. 3. Repeat requirement 2, assuming the shares were sold for $7 instead of $9 per share. 4. Did you record gains or losses in requirements 1, 2, and 3? Explain.