Exercise 15-6

Indigo Corporation is authorized to issue 49,000 shares of $5 par value common stock. During 2017, Indigo took part in the following selected transactions.

1.		Issued 4,500 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $7,900.
2.		Issued 1,100 shares of stock for land appraised at $49,000. The stock was actively traded on a national stock exchange at approximately $46 per share on the date of issuance.
3.		Purchased 470 shares of treasury stock at $41 per share. The treasury shares purchased were issued in 2013 at $38 per share.

(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.