As at December 31, 2022, Cayenne Ltd., a public company, had 40,000 common shares outstanding. During 2023, Cayenne had the following transactions.

1. Issued 6,000 common shares at $29 per share, less $2,000 in costs related to the issuance of the shares.

2. Issued 3,750 common shares for land appraised at $130,000. The closing price for the shares traded on the TSX was $32 per share on the date of issuance.

3. Purchased and retired 500 of the company's shares at $28 per share. The repurchased shares have an average issue price per share of $30.

Instructions

a. Prepare the journal entries to record the three transactions listed.

b. When shares are repurchased, is the original issue price of those individual shares relevant? Explain.