Aspen Industries incorporated in the state of Colorado on March 23, 1994. The company was authorized to issue 1,000,000 shares of $6 par value common stock. Since the date of incor¬ poration, Aspen Industries has entered into the following transactions that affected contributed and earned capital. 1. On March 23, 1994, the company issued 50,000 shares of common stock in exchange for $15 per share. 2. On December 5, 1994, the company issued a 10 percent stock dividend. The market value of the stock is $18 per share. 3. On May 6, 1995, the company issued 60,000 shares of common stock in exchange for $22 per share. 4. On September 24, 1995, the company repurchased 15,000 shares of its own stock for $25 per share. 5. On December 1, 1995, the company reissued 5,000 shares held in treasury for $27 per share. 6. On February 14, 1996, the company declared a 3:1 stock split and adjusted the par value of the stock. (Hint: Consider the effect of the stock split on treasury stock.) 7. On August 19, 1996, the company reissued 8,000 shares held in treasury for $10 per share. 8. On December 27, 1996, the company declared a cash dividend of $50,000. 9. On January 3, 1997, the company paid the dividend declared on December 27, 1996. 10. On October 31, 1997, the company reissued 2,000 shares held in treasury for $15 per share. REQUIRED:

a. Prepare the necessary journal entries to record these transactions.

b. Prepare the stockholders’ equity section of Aspen’s balance sheet as of December 31, 1997. Assume that net income for 1994, 1995, 1996, and 1997 was $400,000, $100,000, $100,000 and $20,000, respectively.