National Chocolate Corp. produces chocolate bars and snacks under the brand names Blast and Soothe. A press

Question:

National Chocolate Corp. produces chocolate bars and snacks under the brand names Blast and Soothe. A press release contained the following information:
March 5— National Chocolate Corp. today announced that its Board of Directors has declared a special “one-time” cash of $ 1 per share on its 100,000 outstanding common shares. The will be paid on April 29 to shareholders of record at the close of business on March 26. The Company’s fiscal year will end April 30.
Required:
1. Prepare any journal entries that National Chocolate Corp. should make on the four dates mentioned in the press release.
2. What two requirements would the board of directors have considered before making the decisions?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...