On Monday 3 June 2013, the directors of Abbco Pty. Ltd. declared a dividend of $1.50 per share to be paid on Wednesday 17 July 2013, with a date of record of Tuesday 25 June 2013. Just before the date of declaration of the dividend, the firm had 20,000 shares on issue, a cash balance of $200,000, retained earnings of $350,000 and no dividends payable. Determine the ex- dividend date and show account values for cash, dividends payable and retained earnings at the following three points in time: just before declaration of the dividend; just after the declaration of the dividend; and just after payment of the dividend.
