Toffee Candymakers produces chocolate bars and snacks under the brand names Blast and Soothe. A press release contained the following information:

March 5Toffee 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 Companys 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 Record the declaration of a cash dividend of $1.00 per share payable on the 98,000 shares of common stock outstanding. 2 Record the entry on the date of record. 3 Record the payment of the cash dividend. 4 Record the entry to close dividends account. 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