National Chocolate Corp. produces chocolate bars and snacks under the brand name

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 dividend of $1.10 per share on its 97,000 outstanding common shares. The dividend 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 press release.

Explanation / Answer

March 05

Dividend Declared ( 97,000 * 1.1) 106,700

To Dividends payable 106,700

(For dividend declared at $1.1 for 97,000 shares outstanding)

April 29

Dividend payable account debit 106,700

To cash 106,700

( Dividend paid on 29 april)

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