March 5, 2010—National Chocolate Corp. today announced that its Board of Directors has declared a special “one-time” cash dividend of $1 per share on its 1.09 million outstanding common shares. The dividend will be paid on April 30 to shareholders of record at the close of business on March 26.

Requirement 1:

Prepare any journal entries that National Chocolate Corp. should make as the result of information in the preceding report. Assume that the company has 1,090,000 million shares outstanding on March 5, the par value is $0.01 per share, and the stock price is $8 per share.

March 5, 2010 Journal Entry?
March 26, 2010 Journal Entry?
April 30, 2010 Journal Entry?

Dividends Declared
Debit Retained Earnings for the amount of dividends
Credit Dividends Payable for the same amount

Mar 26 no entry required

Dividends Paid
Debit Dividends Payable for the amount of dividends paid
Credit Cash for the same amount