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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.