Blue Corporation is authorized to issue 46,000 shares of $5 par value common stock. During 2020, Blue took part in the following selected transactions. 1. Issued 4,900 shares of stock at $48 per share, less costs related to the issuance of the stock totaling $6,000.
2. Issued 1,200 shares of stock for land appraised at $46,000. The stock was actively traded on a national stock exchange at approximately $49 per share on the date of issuance.
3. Purchased 460 shares of treasury stock at $43 per share. The treasury shares purchased were issued in 2016 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.