March 5, 2010-national chocolate corp announced that its board of directors has declared a special one time cash dividend of 1.00 per share on its one million outstanding common shares. The dividend will be paid on April 30 to shareholders of record at the close of business on march 26.
Prepare any journal entries that should be made assuming that the company has 1.0 million shares outstanding on march 5, the par value is .01 per share and the stock price is $10.00 per share.
what two requirements would the board of director's have considered before making the dividend decisions?