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.
