ABC Company is a private company reporting under ASPE. It had the following balances in shareholders equity on May 1, 2020:

Shareholders Equity

Contributed Capital

Share Capital

$1.75 Noncumulative preferred shares, 50,000 shares authorized, 30,000 shares issued $ 700,000

Common shares, unlimited number authorized, 450,000 shares issued 2,030,000

Total Contributed Capital $2,730,000

Retained Earnings 2,100,000

Total Shareholders Equity $4,830,000

On May 2, 2020, ABC declared a 5% common stock dividend distributable on July 15 to shareholders of record on June 20. The fair market value of the common shares on May 2, 2020 was $32.50.

Instructions:

Prepare the necessary journal entries to record the common stock dividend