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Question - On January 1, 2020, ABC Retailer Corporation purchased 40,000 shares of Pi Rice Miller Inc. $40 each. During March 2020, 5% stock dividends were declared and distributed. The fair value of the stocks on dividend declaration date were $32 each. On June 1, 2020, the board declared property dividends of one kilogram of rice for every 500 shares held as of June 10, 2020. The dividends are to be distributed on June 25. A kilo of rice is valued at $38. What is the journal entry on June 25 if ABC plans to have the dividends as additional items to be sold in its store?
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