Toffee Candymakers produces chocolate bars and snacks under the brand names Blast and Soothe. A press release contained the following information: March 5-Toffee Candymakers today announced that its Board of Directors has declared a special "one-time" cash dividend of $1.00 per share on its 98,000 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 Toffee Candymakers should make on
Toffee Candymakers produces chocolate bars and snacks under the brand names Blast and Soothe. A press release contained the following information: March 5-Toffee Candymakers today announced that its Board of Directors has declared a special "one-time" cash dividend of $1.00 per share on its 98,000 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 Toffee Candymakers should make on
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Toffee Candymakers
produces
chocolate bars and snacks under the
brand names Blast and Soothe. A press
release contained the following
information:
March 5-Toffee Candymakers today
announced that its Board of Directors
has declared a special "one-time" cash
dividend of $1.00 per share on its
98,000 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
Toffee Candymakers should make on
the four dates mentioned in the press
release.
2. What would the board of directors
have considered before making the
dividend decisions?
1
2
3
4
Record the declaration of a cash dividend of $1.00 per
share payable on the 98,000 shares of common stock
outstanding.
Record the entry on the date of record.
Record the payment of the cash dividend.
Record the entry to close dividends account.
Transcribed Image Text:What would the board of directors have considered before making the dividend decisions?
The board must consider the balances of common stock and cash before declaring a cash dividend.
The board must consider the balances of retained earnings and cash before declaring a cash dividend.
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