Honey Incorporated produces chocolate bars and snacks under the brand names Blast and Soothe. A press release contained the following information: March 5-Honey Incorporated today announced that its Board of Directors has declared a special "one-time" cash dividend of $1.10 per share on its 101,000 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 Honey Incorporated 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?
