ROBLEMA II Ex. 15-132-Treasury stock For numerous reasons, a corporation may reacquire shares of its own capital stock. When a company purchases treasury stock, it usually accounts for the stock using the cost method Instructions: Write the account name or account names on how a company would account for each of the following: (Indicate if the account is debited or credited in the appropriate column). 1 Purchase of shares at a price less than par value 2 Subsequent resale of treasury shares at a price less than purchase price, but more than par value. 3 Subsequent resale of treasury shares at a price greater than both purchase price and par value. 4. Effect on net income PROBLEM I SOLUTION: 3 2 # GENERAL JOURNAL ACCOUNT NAME REF DEBIT CREDIT