Loxley Corporation is authorized to issue 50,000 shares of $10 par value ordinary shares. During 2022, Loxley took part in the following selected transactions.

1. Issued 5,000 shares at $45 per share, less costs related to the issuance of the shares totaling $7,000.

2. Issued 1,000 shares for land appraised at $50,000. The shares were actively traded on a national securities exchange at approximately $46 per share on the date of issuance.

3. Purchased 500 treasury shares at $44 per share. The treasury shares purchased were issued in 2021 at $40 per share.

Instructions

a. Prepare the journal entry to record item 1.

b. Prepare the journal entry to record item 2.

c. Prepare the journal entry to record item 3 using the cost method.