Paudel Limited has been in the retail business for many years and has reached its goal in securing a strong financial position. The board of directors decided that it is time to adopt a policy of paying quarterly dividends. No dividends had been declared since incorporation. A $0.50 per share dividend was declared on Paudel's 100,000 outstanding common shares. 

(a) Does this decision require a change in accounting policy? 

(b) What journal entry(ies), if any, should Paudel record at the date of declaration of the dividend?