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Part"7": Alpha Watches Corporation's balance sheet as of December 31, 2018, follows: $8,000,000 Alpha Watches Corporation Balance Sheet (Partial) December 31, 2018 Paid-in Capital: Common Stock-SI Par value: 11,000,000 shares authorized. 8,000,000 shares issued and outstanding Paid In Capital in excess of Par-Common Paid-In Capital Retained Earnings Total Stockholders' Equity 200,000 8,200,000 100.000.000 $808,200,000 During 2019, Alpha Watches Corporation had the following transactions: Jan.1 issued 10,000 shares of common stock for S10 per share Feb. 15 Issued 2,000 shares of common stock for Sper share Mar. Declared a $0.20 per share cash dividend on its common stock to be paid on March 30, Date of record: March 15 Mar. 30|Paid the cash dividend to stockholders. Nov.1 Declared a 30% common stock dividend on its common stock outstanding Current market price of the stock was 58. Date of record: Nov. 15 Nov. 30|Disturbed stock to the stockholders Dec. I Purchased 5,000 shares of treasury stock.common at $12 per share. Dec. 20 Sold 3,000 shares of treasury stock-common at S14 per share Requirements: 1. Prepare journal entries to record Alpha Watches transactions for year 2019, 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2019. Assume that Alpha Watches Corporation had net income of $20,000,000 during 2019 and that Cash Dividends and Stock Dividends have been closed to the Retained Earnings account. 3. Complete the following chart by inserting a check mark (1) for each statement that is true. Cash Dividend Stock Dividend Decreases retained earnings Has no effect on a liability Increases paid-in-capital by the same amount that it decreases retained earning Decreases both total assets and total stockholders' equity Has no effect on total stockholders' equity 4. Of the following statements, which are true for the corporate form of organization? a. Ownership rights cannot be easily transferred. b. Owners have unlimited liability for corporate debts. c. Capital is more easily accumulated than with most other forms of organization d. It is a separate legal entity. e. It has a limited life. f. Owners are not agents of the corporation. 2.Prepare the stockholders' equity section of the balance sheet as of December 31, 2019. Assume that Alpha Watches Corporation had net income of $20,000,000 during 2019 and that Cash # Dividends and Stock Dividends have been closed to the Retained Earnings account. Alpha Watches Corporation Balance Sheet (Partial) December 31, 2019 Stockholders' Equity Total Stockholders' Equity

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