Hearts Corporation is authorized to issue 50,000 shares of par value ordinary shares, During 2007, Hearts took part in the following selected transactions:
1. Issued 5,000 ordinary shares at P45 per share, less cost related to the issuance of the share totalling P7,000.00
2. Issued 1,000 shares for land appraised at P50,000. The share was actively traded on a national stock exchange at approximately P46 per share on the date of issuance.
3. Purchased 500 treasury shares at P43 per share. The treasury shares purchased were issued in 2004 at P40 per share.
INSTRUCTIONS:
(a) Prepare the journal entry to record item no. 1.
(b) Prepare the journal entry to record item no. 2.
(c) Prepare the journal entry to record item no. 3 using the cost method.