Prepare the journal entries to record the three transactions

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Question - As of December 31, 2016 Cayenne Ltd., a public company, has 40,000 common shares outstanding. During 2017, Cayenne had the following transactions.

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

b. 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.

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

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

2. When shares are repurchased, is the original issue price of those individuals' shares relevant? Explain.

Reference no: EM132234539

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