Metro Chocolate Corp. produces chocolate bars and snacks under the brand names Blast and Soothe. A press

Question:

Metro Chocolate Corp. produces chocolate bars and snacks under the brand names Blast and Soothe. A press release contained the following information:
March 5, 2014-Metro Chocolate Corp. today announced that its Board of Directors has declared a special "one-time" cash of $1.00 per share on its one million outstanding common shares. The will be paid on April 30 to shareholders of record at the close of business on March 26.
Required:
1. Prepare any journal entries that Metro Chocolate Corp. should make as a result of information in the press release. Assume that the company has 1.0 million shares outstanding on March 5, the is $0.01 per share, and the share price is $10 per share.
2. What two requirements would the board of directors have considered before making the decisions?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
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