Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 33

Recording Cash Dividends
National Chocolate Corp. produces chocolate bars and snacks under the brand names Blast and Soothe. A press release contained the following information:

Required:
1. Prepare any journal entries that National Chocolate Corp. should make as the result of information in the preceding report.
2. What two requirements would the board of directors have considered before making the dividend decisions