Loxley Corporation is authorized to issue 50,000 shares of \($10\) par value ordinary shares. During 2015, 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 2014 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.