Johnston, Inc., engaged in the following transactions involving treasury stock:

Feb. 10	Purchased for cash 17,000 shares of treasury stock at a price of $27 per share.
June 4	Reissued 6,000 shares of treasury stock at a price of $48 per share.
Dec. 22	Reissued 4,000 shares of treasury stock at a price of $22 per share.

a.

Prepare general journal entries to record these transactions.

b.	Compute the amount of retained earnings that should be restricted because of the treasury stock still owned at December 31.