Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021 titled 'Repurchase and cancellation of common shares'. Recreate the journal entry to reflect the repurchase and cancellation. Were the shares repurchased for a higher or lower amount than they were originally issued for? Explain. [Hint: Be careful, one of the columns in the statement reflects the number of shares (not a $value).] Dollarama Inc. Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Balance - February 2, 2020 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge gains to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares Reclassification for the exercise of share options Balance - January 31, 2021 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge losses to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares i Reclassification for the exercise of share options Balance - January 30, 2022 Note 12 310,231,037 2 222 22 12 12 12 12 12 NNNNNN 12 12 310,266,429 12 12 Number of common shares 12 12 . (1,621,708) (2,437) 1,657,100 32,399 6,821 (18,176,760) 723,900 capital $ Share Contributed surplus $ 12 292,813,569 448,704 485,487 (29,425) 19,164 4,220 479,446 29,108 6,240 (6,821) 28,527 8,617 (4.220) 32,924 Deficit $ (574,110) 564,348 564,348 (55,616) (84,005) (149,983) 663,169 663,169 (60,772) (1.030,493) (578,079) Accumulated other comprehensive Income (loss) 4,102 (32,620) (32,620) (659) (29,177) (1.070) (1,070) 29,922 (325) Total $ (92.196) 564,348 (32,620) 531,728 (659) (55,616) (87,042) 6,240 32,399 334,854 663,169 (1.070) 662,099 29,922 (60,772) (1,059,918) 8,617 19,164 (66,034) Dollarama Inc. Consolidated Statements of Financial Position as at (Expressed in thousands of Canadian dollars) Assets Current assets Cash Accounts receivable Prepaid expenses Inventories Derivative financial instruments Non-current assets Right-of-use assets Property, plant and equipment Intangible assets Derivative financial instruments Goodwill Equity-accounted investment Total assets Note 14 677889 January 30, 2022 71,058 26,260 13,135 590,927 15,987 717,367 1,480,255 761,876 164,066 290 727,782 211,926 4,063,562 January 31, 2021 439,144 20,546 9,549 630,655 468 1,100,362 1,344,639 709,469 161,791 314 727,782 179,389 4,223,746 Liabilities and shareholders' equity (deficit) Current liabilities Accounts payable and accrued liabilities Short-term borrowings Dividend payable Derivative financial instruments Income taxes payable Current portion of long-term debt Current portion of lease liabilities Non-current liabilities Non-current portion of long-term debt Non-current portion of lease liabilities Deferred income taxes Total liabilities Shareholders' equity (deficit) Share capital Contributed surplus Deficit Accumulated other comprehensive loss Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 10 11 12 14 11 6 163 11 2222 283,125 89,386 14,891 3,435 62,516 257,674 200,864 911,891 1,539,240 1,526,564 151,901 4,129,596 479,446 32,924 (578,079) (325) (66,034) 4,063,562 253,072 14,583 25,821 12,975 832,821 181,893 1,321,165 1,044,079 1,401,769 121,879 3,888,892 485,487 28,527 (149,983) (29,177) 334,854 4,223,746 Dollarama Inc. Consolidated Statements of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Share of net earnings of equity-accounted investment Operating income Financing costs Earnings before income taxes Income taxes Net earnings Note 17 19 47 13 January 30, 2022 4,330,761 2,428,536 1,902,225 652,832 297,960 (33,184) 984,617 91,216 893,401 230,232 663,169 January 31, 2021 $ 4,026,259 2,261,248 1,765,011 654,032 269,633 (19,654) 861,000 95,646 765,354 201,006 564,348 12 Shareholders' equity (deficit) b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital for fiscal years ended on the dates indicated below were as follows: Balance, beginning of year Cancellation under NCIB Exercise of share options Balance, end of year January 30, 2022 Number of common shares 310,266,429 (18,176,760) 723,900 292,813,569 Amount ($) 485,487 (29,425) 23,384 479,446 January 31, 2021 Number of common shares 310,231,037 (1,621,708) 1,657,100 310,266,429 Amount (S) 448,704 (2,437) 39,220 485,487 e) Dividends The table below outlines the amounts of dividends recognized as distributions to holders of common shares in the consolidated statement of changes in shareholders' equity (deficit) during each quarter of the fiscal year ended January 30, 2022 and January 31, 2021. For the quarters ending Dividend declared Dividend per common share Declaration date Payment date May 2, 2021 $15,501 $0.050 March 30, 2021 May 7, 2021 August 1, 2021 $15,311 $0.050 June 8, 2021 August 6, 2021 October 31, 2021 $15,069 $0.050 September 8, 2021 November 5, 2021 January 30, 2022 $14,891 $0.050 December 7, 2021 February 4, 2022 Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021 titled 'Repurchase and cancellation of common shares'. Recreate the journal entry to reflect the repurchase and cancellation. Were the shares repurchased for a higher or lower amount than they were originally issued for? Explain. [Hint: Be careful, one of the columns in the statement reflects the number of shares (not a $value).] Dollarama Inc. Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Balance - February 2, 2020 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge gains to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares Reclassification for the exercise of share options Balance - January 31, 2021 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge losses to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares i Reclassification for the exercise of share options Balance - January 30, 2022 Note 12 310,231,037 2 222 22 12 12 12 12 12 NNNNNN 12 12 310,266,429 12 12 Number of common shares 12 12 . (1,621,708) (2,437) 1,657,100 32,399 6,821 (18,176,760) 723,900 capital $ Share Contributed surplus $ 12 292,813,569 448,704 485,487 (29,425) 19,164 4,220 479,446 29,108 6,240 (6,821) 28,527 8,617 (4.220) 32,924 Deficit $ (574,110) 564,348 564,348 (55,616) (84,005) (149,983) 663,169 663,169 (60,772) (1.030,493) (578,079) Accumulated other comprehensive Income (loss) 4,102 (32,620) (32,620) (659) (29,177) (1.070) (1,070) 29,922 (325) Total $ (92.196) 564,348 (32,620) 531,728 (659) (55,616) (87,042) 6,240 32,399 334,854 663,169 (1.070) 662,099 29,922 (60,772) (1,059,918) 8,617 19,164 (66,034) Dollarama Inc. Consolidated Statements of Financial Position as at (Expressed in thousands of Canadian dollars) Assets Current assets Cash Accounts receivable Prepaid expenses Inventories Derivative financial instruments Non-current assets Right-of-use assets Property, plant and equipment Intangible assets Derivative financial instruments Goodwill Equity-accounted investment Total assets Note 14 677889 January 30, 2022 71,058 26,260 13,135 590,927 15,987 717,367 1,480,255 761,876 164,066 290 727,782 211,926 4,063,562 January 31, 2021 439,144 20,546 9,549 630,655 468 1,100,362 1,344,639 709,469 161,791 314 727,782 179,389 4,223,746 Liabilities and shareholders' equity (deficit) Current liabilities Accounts payable and accrued liabilities Short-term borrowings Dividend payable Derivative financial instruments Income taxes payable Current portion of long-term debt Current portion of lease liabilities Non-current liabilities Non-current portion of long-term debt Non-current portion of lease liabilities Deferred income taxes Total liabilities Shareholders' equity (deficit) Share capital Contributed surplus Deficit Accumulated other comprehensive loss Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 10 11 12 14 11 6 163 11 2222 283,125 89,386 14,891 3,435 62,516 257,674 200,864 911,891 1,539,240 1,526,564 151,901 4,129,596 479,446 32,924 (578,079) (325) (66,034) 4,063,562 253,072 14,583 25,821 12,975 832,821 181,893 1,321,165 1,044,079 1,401,769 121,879 3,888,892 485,487 28,527 (149,983) (29,177) 334,854 4,223,746 Dollarama Inc. Consolidated Statements of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Share of net earnings of equity-accounted investment Operating income Financing costs Earnings before income taxes Income taxes Net earnings Note 17 19 47 13 January 30, 2022 4,330,761 2,428,536 1,902,225 652,832 297,960 (33,184) 984,617 91,216 893,401 230,232 663,169 January 31, 2021 $ 4,026,259 2,261,248 1,765,011 654,032 269,633 (19,654) 861,000 95,646 765,354 201,006 564,348 12 Shareholders' equity (deficit) b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital for fiscal years ended on the dates indicated below were as follows: Balance, beginning of year Cancellation under NCIB Exercise of share options Balance, end of year January 30, 2022 Number of common shares 310,266,429 (18,176,760) 723,900 292,813,569 Amount ($) 485,487 (29,425) 23,384 479,446 January 31, 2021 Number of common shares 310,231,037 (1,621,708) 1,657,100 310,266,429 Amount (S) 448,704 (2,437) 39,220 485,487 e) Dividends The table below outlines the amounts of dividends recognized as distributions to holders of common shares in the consolidated statement of changes in shareholders' equity (deficit) during each quarter of the fiscal year ended January 30, 2022 and January 31, 2021. For the quarters ending Dividend declared Dividend per common share Declaration date Payment date May 2, 2021 $15,501 $0.050 March 30, 2021 May 7, 2021 August 1, 2021 $15,311 $0.050 June 8, 2021 August 6, 2021 October 31, 2021 $15,069 $0.050 September 8, 2021 November 5, 2021 January 30, 2022 $14,891 $0.050 December 7, 2021 February 4, 2022 Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021 titled 'Repurchase and cancellation of common shares'. Recreate the journal entry to reflect the repurchase and cancellation. Were the shares repurchased for a higher or lower amount than they were originally issued for? Explain. [Hint: Be careful, one of the columns in the statement reflects the number of shares (not a $value).] Dollarama Inc. Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Balance - February 2, 2020 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge gains to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares Reclassification for the exercise of share options Balance - January 31, 2021 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge losses to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares i Reclassification for the exercise of share options Balance - January 30, 2022 Note 12 310,231,037 2 222 22 12 12 12 12 12 NNNNNN 12 12 310,266,429 12 12 Number of common shares 12 12 . (1,621,708) (2,437) 1,657,100 32,399 6,821 (18,176,760) 723,900 capital $ Share Contributed surplus $ 12 292,813,569 448,704 485,487 (29,425) 19,164 4,220 479,446 29,108 6,240 (6,821) 28,527 8,617 (4.220) 32,924 Deficit $ (574,110) 564,348 564,348 (55,616) (84,005) (149,983) 663,169 663,169 (60,772) (1.030,493) (578,079) Accumulated other comprehensive Income (loss) 4,102 (32,620) (32,620) (659) (29,177) (1.070) (1,070) 29,922 (325) Total $ (92.196) 564,348 (32,620) 531,728 (659) (55,616) (87,042) 6,240 32,399 334,854 663,169 (1.070) 662,099 29,922 (60,772) (1,059,918) 8,617 19,164 (66,034) Dollarama Inc. Consolidated Statements of Financial Position as at (Expressed in thousands of Canadian dollars) Assets Current assets Cash Accounts receivable Prepaid expenses Inventories Derivative financial instruments Non-current assets Right-of-use assets Property, plant and equipment Intangible assets Derivative financial instruments Goodwill Equity-accounted investment Total assets Note 14 677889 January 30, 2022 71,058 26,260 13,135 590,927 15,987 717,367 1,480,255 761,876 164,066 290 727,782 211,926 4,063,562 January 31, 2021 439,144 20,546 9,549 630,655 468 1,100,362 1,344,639 709,469 161,791 314 727,782 179,389 4,223,746 Liabilities and shareholders' equity (deficit) Current liabilities Accounts payable and accrued liabilities Short-term borrowings Dividend payable Derivative financial instruments Income taxes payable Current portion of long-term debt Current portion of lease liabilities Non-current liabilities Non-current portion of long-term debt Non-current portion of lease liabilities Deferred income taxes Total liabilities Shareholders' equity (deficit) Share capital Contributed surplus Deficit Accumulated other comprehensive loss Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 10 11 12 14 11 6 163 11 2222 283,125 89,386 14,891 3,435 62,516 257,674 200,864 911,891 1,539,240 1,526,564 151,901 4,129,596 479,446 32,924 (578,079) (325) (66,034) 4,063,562 253,072 14,583 25,821 12,975 832,821 181,893 1,321,165 1,044,079 1,401,769 121,879 3,888,892 485,487 28,527 (149,983) (29,177) 334,854 4,223,746 Dollarama Inc. Consolidated Statements of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Share of net earnings of equity-accounted investment Operating income Financing costs Earnings before income taxes Income taxes Net earnings Note 17 19 47 13 January 30, 2022 4,330,761 2,428,536 1,902,225 652,832 297,960 (33,184) 984,617 91,216 893,401 230,232 663,169 January 31, 2021 $ 4,026,259 2,261,248 1,765,011 654,032 269,633 (19,654) 861,000 95,646 765,354 201,006 564,348 12 Shareholders' equity (deficit) b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital for fiscal years ended on the dates indicated below were as follows: Balance, beginning of year Cancellation under NCIB Exercise of share options Balance, end of year January 30, 2022 Number of common shares 310,266,429 (18,176,760) 723,900 292,813,569 Amount ($) 485,487 (29,425) 23,384 479,446 January 31, 2021 Number of common shares 310,231,037 (1,621,708) 1,657,100 310,266,429 Amount (S) 448,704 (2,437) 39,220 485,487 e) Dividends The table below outlines the amounts of dividends recognized as distributions to holders of common shares in the consolidated statement of changes in shareholders' equity (deficit) during each quarter of the fiscal year ended January 30, 2022 and January 31, 2021. For the quarters ending Dividend declared Dividend per common share Declaration date Payment date May 2, 2021 $15,501 $0.050 March 30, 2021 May 7, 2021 August 1, 2021 $15,311 $0.050 June 8, 2021 August 6, 2021 October 31, 2021 $15,069 $0.050 September 8, 2021 November 5, 2021 January 30, 2022 $14,891 $0.050 December 7, 2021 February 4, 2022 Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021 titled 'Repurchase and cancellation of common shares'. Recreate the journal entry to reflect the repurchase and cancellation. Were the shares repurchased for a higher or lower amount than they were originally issued for? Explain. [Hint: Be careful, one of the columns in the statement reflects the number of shares (not a $value).] Dollarama Inc. Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Balance - February 2, 2020 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge gains to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares Reclassification for the exercise of share options Balance - January 31, 2021 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge losses to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares i Reclassification for the exercise of share options Balance - January 30, 2022 Note 12 310,231,037 2 222 22 12 12 12 12 12 NNNNNN 12 12 310,266,429 12 12 Number of common shares 12 12 . (1,621,708) (2,437) 1,657,100 32,399 6,821 (18,176,760) 723,900 capital $ Share Contributed surplus $ 12 292,813,569 448,704 485,487 (29,425) 19,164 4,220 479,446 29,108 6,240 (6,821) 28,527 8,617 (4.220) 32,924 Deficit $ (574,110) 564,348 564,348 (55,616) (84,005) (149,983) 663,169 663,169 (60,772) (1.030,493) (578,079) Accumulated other comprehensive Income (loss) 4,102 (32,620) (32,620) (659) (29,177) (1.070) (1,070) 29,922 (325) Total $ (92.196) 564,348 (32,620) 531,728 (659) (55,616) (87,042) 6,240 32,399 334,854 663,169 (1.070) 662,099 29,922 (60,772) (1,059,918) 8,617 19,164 (66,034) Dollarama Inc. Consolidated Statements of Financial Position as at (Expressed in thousands of Canadian dollars) Assets Current assets Cash Accounts receivable Prepaid expenses Inventories Derivative financial instruments Non-current assets Right-of-use assets Property, plant and equipment Intangible assets Derivative financial instruments Goodwill Equity-accounted investment Total assets Note 14 677889 January 30, 2022 71,058 26,260 13,135 590,927 15,987 717,367 1,480,255 761,876 164,066 290 727,782 211,926 4,063,562 January 31, 2021 439,144 20,546 9,549 630,655 468 1,100,362 1,344,639 709,469 161,791 314 727,782 179,389 4,223,746 Liabilities and shareholders' equity (deficit) Current liabilities Accounts payable and accrued liabilities Short-term borrowings Dividend payable Derivative financial instruments Income taxes payable Current portion of long-term debt Current portion of lease liabilities Non-current liabilities Non-current portion of long-term debt Non-current portion of lease liabilities Deferred income taxes Total liabilities Shareholders' equity (deficit) Share capital Contributed surplus Deficit Accumulated other comprehensive loss Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 10 11 12 14 11 6 163 11 2222 283,125 89,386 14,891 3,435 62,516 257,674 200,864 911,891 1,539,240 1,526,564 151,901 4,129,596 479,446 32,924 (578,079) (325) (66,034) 4,063,562 253,072 14,583 25,821 12,975 832,821 181,893 1,321,165 1,044,079 1,401,769 121,879 3,888,892 485,487 28,527 (149,983) (29,177) 334,854 4,223,746 Dollarama Inc. Consolidated Statements of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Share of net earnings of equity-accounted investment Operating income Financing costs Earnings before income taxes Income taxes Net earnings Note 17 19 47 13 January 30, 2022 4,330,761 2,428,536 1,902,225 652,832 297,960 (33,184) 984,617 91,216 893,401 230,232 663,169 January 31, 2021 $ 4,026,259 2,261,248 1,765,011 654,032 269,633 (19,654) 861,000 95,646 765,354 201,006 564,348 12 Shareholders' equity (deficit) b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital for fiscal years ended on the dates indicated below were as follows: Balance, beginning of year Cancellation under NCIB Exercise of share options Balance, end of year January 30, 2022 Number of common shares 310,266,429 (18,176,760) 723,900 292,813,569 Amount ($) 485,487 (29,425) 23,384 479,446 January 31, 2021 Number of common shares 310,231,037 (1,621,708) 1,657,100 310,266,429 Amount (S) 448,704 (2,437) 39,220 485,487 e) Dividends The table below outlines the amounts of dividends recognized as distributions to holders of common shares in the consolidated statement of changes in shareholders' equity (deficit) during each quarter of the fiscal year ended January 30, 2022 and January 31, 2021. For the quarters ending Dividend declared Dividend per common share Declaration date Payment date May 2, 2021 $15,501 $0.050 March 30, 2021 May 7, 2021 August 1, 2021 $15,311 $0.050 June 8, 2021 August 6, 2021 October 31, 2021 $15,069 $0.050 September 8, 2021 November 5, 2021 January 30, 2022 $14,891 $0.050 December 7, 2021 February 4, 2022 Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021 titled 'Repurchase and cancellation of common shares'. Recreate the journal entry to reflect the repurchase and cancellation. Were the shares repurchased for a higher or lower amount than they were originally issued for? Explain. [Hint: Be careful, one of the columns in the statement reflects the number of shares (not a $value).] Dollarama Inc. Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Balance - February 2, 2020 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge gains to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares Reclassification for the exercise of share options Balance - January 31, 2021 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge losses to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares i Reclassification for the exercise of share options Balance - January 30, 2022 Note 12 310,231,037 2 222 22 12 12 12 12 12 NNNNNN 12 12 310,266,429 12 12 Number of common shares 12 12 . (1,621,708) (2,437) 1,657,100 32,399 6,821 (18,176,760) 723,900 capital $ Share Contributed surplus $ 12 292,813,569 448,704 485,487 (29,425) 19,164 4,220 479,446 29,108 6,240 (6,821) 28,527 8,617 (4.220) 32,924 Deficit $ (574,110) 564,348 564,348 (55,616) (84,005) (149,983) 663,169 663,169 (60,772) (1.030,493) (578,079) Accumulated other comprehensive Income (loss) 4,102 (32,620) (32,620) (659) (29,177) (1.070) (1,070) 29,922 (325) Total $ (92.196) 564,348 (32,620) 531,728 (659) (55,616) (87,042) 6,240 32,399 334,854 663,169 (1.070) 662,099 29,922 (60,772) (1,059,918) 8,617 19,164 (66,034) Dollarama Inc. Consolidated Statements of Financial Position as at (Expressed in thousands of Canadian dollars) Assets Current assets Cash Accounts receivable Prepaid expenses Inventories Derivative financial instruments Non-current assets Right-of-use assets Property, plant and equipment Intangible assets Derivative financial instruments Goodwill Equity-accounted investment Total assets Note 14 677889 January 30, 2022 71,058 26,260 13,135 590,927 15,987 717,367 1,480,255 761,876 164,066 290 727,782 211,926 4,063,562 January 31, 2021 439,144 20,546 9,549 630,655 468 1,100,362 1,344,639 709,469 161,791 314 727,782 179,389 4,223,746 Liabilities and shareholders' equity (deficit) Current liabilities Accounts payable and accrued liabilities Short-term borrowings Dividend payable Derivative financial instruments Income taxes payable Current portion of long-term debt Current portion of lease liabilities Non-current liabilities Non-current portion of long-term debt Non-current portion of lease liabilities Deferred income taxes Total liabilities Shareholders' equity (deficit) Share capital Contributed surplus Deficit Accumulated other comprehensive loss Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 10 11 12 14 11 6 163 11 2222 283,125 89,386 14,891 3,435 62,516 257,674 200,864 911,891 1,539,240 1,526,564 151,901 4,129,596 479,446 32,924 (578,079) (325) (66,034) 4,063,562 253,072 14,583 25,821 12,975 832,821 181,893 1,321,165 1,044,079 1,401,769 121,879 3,888,892 485,487 28,527 (149,983) (29,177) 334,854 4,223,746 Dollarama Inc. Consolidated Statements of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Share of net earnings of equity-accounted investment Operating income Financing costs Earnings before income taxes Income taxes Net earnings Note 17 19 47 13 January 30, 2022 4,330,761 2,428,536 1,902,225 652,832 297,960 (33,184) 984,617 91,216 893,401 230,232 663,169 January 31, 2021 $ 4,026,259 2,261,248 1,765,011 654,032 269,633 (19,654) 861,000 95,646 765,354 201,006 564,348 12 Shareholders' equity (deficit) b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital for fiscal years ended on the dates indicated below were as follows: Balance, beginning of year Cancellation under NCIB Exercise of share options Balance, end of year January 30, 2022 Number of common shares 310,266,429 (18,176,760) 723,900 292,813,569 Amount ($) 485,487 (29,425) 23,384 479,446 January 31, 2021 Number of common shares 310,231,037 (1,621,708) 1,657,100 310,266,429 Amount (S) 448,704 (2,437) 39,220 485,487 e) Dividends The table below outlines the amounts of dividends recognized as distributions to holders of common shares in the consolidated statement of changes in shareholders' equity (deficit) during each quarter of the fiscal year ended January 30, 2022 and January 31, 2021. For the quarters ending Dividend declared Dividend per common share Declaration date Payment date May 2, 2021 $15,501 $0.050 March 30, 2021 May 7, 2021 August 1, 2021 $15,311 $0.050 June 8, 2021 August 6, 2021 October 31, 2021 $15,069 $0.050 September 8, 2021 November 5, 2021 January 30, 2022 $14,891 $0.050 December 7, 2021 February 4, 2022 Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021 titled 'Repurchase and cancellation of common shares'. Recreate the journal entry to reflect the repurchase and cancellation. Were the shares repurchased for a higher or lower amount than they were originally issued for? Explain. [Hint: Be careful, one of the columns in the statement reflects the number of shares (not a $value).] Dollarama Inc. Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Balance - February 2, 2020 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge gains to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares Reclassification for the exercise of share options Balance - January 31, 2021 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge losses to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares i Reclassification for the exercise of share options Balance - January 30, 2022 Note 12 310,231,037 2 222 22 12 12 12 12 12 NNNNNN 12 12 310,266,429 12 12 Number of common shares 12 12 . (1,621,708) (2,437) 1,657,100 32,399 6,821 (18,176,760) 723,900 capital $ Share Contributed surplus $ 12 292,813,569 448,704 485,487 (29,425) 19,164 4,220 479,446 29,108 6,240 (6,821) 28,527 8,617 (4.220) 32,924 Deficit $ (574,110) 564,348 564,348 (55,616) (84,005) (149,983) 663,169 663,169 (60,772) (1.030,493) (578,079) Accumulated other comprehensive Income (loss) 4,102 (32,620) (32,620) (659) (29,177) (1.070) (1,070) 29,922 (325) Total $ (92.196) 564,348 (32,620) 531,728 (659) (55,616) (87,042) 6,240 32,399 334,854 663,169 (1.070) 662,099 29,922 (60,772) (1,059,918) 8,617 19,164 (66,034) Dollarama Inc. Consolidated Statements of Financial Position as at (Expressed in thousands of Canadian dollars) Assets Current assets Cash Accounts receivable Prepaid expenses Inventories Derivative financial instruments Non-current assets Right-of-use assets Property, plant and equipment Intangible assets Derivative financial instruments Goodwill Equity-accounted investment Total assets Note 14 677889 January 30, 2022 71,058 26,260 13,135 590,927 15,987 717,367 1,480,255 761,876 164,066 290 727,782 211,926 4,063,562 January 31, 2021 439,144 20,546 9,549 630,655 468 1,100,362 1,344,639 709,469 161,791 314 727,782 179,389 4,223,746 Liabilities and shareholders' equity (deficit) Current liabilities Accounts payable and accrued liabilities Short-term borrowings Dividend payable Derivative financial instruments Income taxes payable Current portion of long-term debt Current portion of lease liabilities Non-current liabilities Non-current portion of long-term debt Non-current portion of lease liabilities Deferred income taxes Total liabilities Shareholders' equity (deficit) Share capital Contributed surplus Deficit Accumulated other comprehensive loss Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 10 11 12 14 11 6 163 11 2222 283,125 89,386 14,891 3,435 62,516 257,674 200,864 911,891 1,539,240 1,526,564 151,901 4,129,596 479,446 32,924 (578,079) (325) (66,034) 4,063,562 253,072 14,583 25,821 12,975 832,821 181,893 1,321,165 1,044,079 1,401,769 121,879 3,888,892 485,487 28,527 (149,983) (29,177) 334,854 4,223,746 Dollarama Inc. Consolidated Statements of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Share of net earnings of equity-accounted investment Operating income Financing costs Earnings before income taxes Income taxes Net earnings Note 17 19 47 13 January 30, 2022 4,330,761 2,428,536 1,902,225 652,832 297,960 (33,184) 984,617 91,216 893,401 230,232 663,169 January 31, 2021 $ 4,026,259 2,261,248 1,765,011 654,032 269,633 (19,654) 861,000 95,646 765,354 201,006 564,348 12 Shareholders' equity (deficit) b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital for fiscal years ended on the dates indicated below were as follows: Balance, beginning of year Cancellation under NCIB Exercise of share options Balance, end of year January 30, 2022 Number of common shares 310,266,429 (18,176,760) 723,900 292,813,569 Amount ($) 485,487 (29,425) 23,384 479,446 January 31, 2021 Number of common shares 310,231,037 (1,621,708) 1,657,100 310,266,429 Amount (S) 448,704 (2,437) 39,220 485,487 e) Dividends The table below outlines the amounts of dividends recognized as distributions to holders of common shares in the consolidated statement of changes in shareholders' equity (deficit) during each quarter of the fiscal year ended January 30, 2022 and January 31, 2021. For the quarters ending Dividend declared Dividend per common share Declaration date Payment date May 2, 2021 $15,501 $0.050 March 30, 2021 May 7, 2021 August 1, 2021 $15,311 $0.050 June 8, 2021 August 6, 2021 October 31, 2021 $15,069 $0.050 September 8, 2021 November 5, 2021 January 30, 2022 $14,891 $0.050 December 7, 2021 February 4, 2022 Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021 titled 'Repurchase and cancellation of common shares'. Recreate the journal entry to reflect the repurchase and cancellation. Were the shares repurchased for a higher or lower amount than they were originally issued for? Explain. [Hint: Be careful, one of the columns in the statement reflects the number of shares (not a $value).] Dollarama Inc. Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Balance - February 2, 2020 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge gains to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares Reclassification for the exercise of share options Balance - January 31, 2021 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge losses to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares i Reclassification for the exercise of share options Balance - January 30, 2022 Note 12 310,231,037 2 222 22 12 12 12 12 12 NNNNNN 12 12 310,266,429 12 12 Number of common shares 12 12 . (1,621,708) (2,437) 1,657,100 32,399 6,821 (18,176,760) 723,900 capital $ Share Contributed surplus $ 12 292,813,569 448,704 485,487 (29,425) 19,164 4,220 479,446 29,108 6,240 (6,821) 28,527 8,617 (4.220) 32,924 Deficit $ (574,110) 564,348 564,348 (55,616) (84,005) (149,983) 663,169 663,169 (60,772) (1.030,493) (578,079) Accumulated other comprehensive Income (loss) 4,102 (32,620) (32,620) (659) (29,177) (1.070) (1,070) 29,922 (325) Total $ (92.196) 564,348 (32,620) 531,728 (659) (55,616) (87,042) 6,240 32,399 334,854 663,169 (1.070) 662,099 29,922 (60,772) (1,059,918) 8,617 19,164 (66,034) Dollarama Inc. Consolidated Statements of Financial Position as at (Expressed in thousands of Canadian dollars) Assets Current assets Cash Accounts receivable Prepaid expenses Inventories Derivative financial instruments Non-current assets Right-of-use assets Property, plant and equipment Intangible assets Derivative financial instruments Goodwill Equity-accounted investment Total assets Note 14 677889 January 30, 2022 71,058 26,260 13,135 590,927 15,987 717,367 1,480,255 761,876 164,066 290 727,782 211,926 4,063,562 January 31, 2021 439,144 20,546 9,549 630,655 468 1,100,362 1,344,639 709,469 161,791 314 727,782 179,389 4,223,746 Liabilities and shareholders' equity (deficit) Current liabilities Accounts payable and accrued liabilities Short-term borrowings Dividend payable Derivative financial instruments Income taxes payable Current portion of long-term debt Current portion of lease liabilities Non-current liabilities Non-current portion of long-term debt Non-current portion of lease liabilities Deferred income taxes Total liabilities Shareholders' equity (deficit) Share capital Contributed surplus Deficit Accumulated other comprehensive loss Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 10 11 12 14 11 6 163 11 2222 283,125 89,386 14,891 3,435 62,516 257,674 200,864 911,891 1,539,240 1,526,564 151,901 4,129,596 479,446 32,924 (578,079) (325) (66,034) 4,063,562 253,072 14,583 25,821 12,975 832,821 181,893 1,321,165 1,044,079 1,401,769 121,879 3,888,892 485,487 28,527 (149,983) (29,177) 334,854 4,223,746 Dollarama Inc. Consolidated Statements of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Share of net earnings of equity-accounted investment Operating income Financing costs Earnings before income taxes Income taxes Net earnings Note 17 19 47 13 January 30, 2022 4,330,761 2,428,536 1,902,225 652,832 297,960 (33,184) 984,617 91,216 893,401 230,232 663,169 January 31, 2021 $ 4,026,259 2,261,248 1,765,011 654,032 269,633 (19,654) 861,000 95,646 765,354 201,006 564,348 12 Shareholders' equity (deficit) b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital for fiscal years ended on the dates indicated below were as follows: Balance, beginning of year Cancellation under NCIB Exercise of share options Balance, end of year January 30, 2022 Number of common shares 310,266,429 (18,176,760) 723,900 292,813,569 Amount ($) 485,487 (29,425) 23,384 479,446 January 31, 2021 Number of common shares 310,231,037 (1,621,708) 1,657,100 310,266,429 Amount (S) 448,704 (2,437) 39,220 485,487 e) Dividends The table below outlines the amounts of dividends recognized as distributions to holders of common shares in the consolidated statement of changes in shareholders' equity (deficit) during each quarter of the fiscal year ended January 30, 2022 and January 31, 2021. For the quarters ending Dividend declared Dividend per common share Declaration date Payment date May 2, 2021 $15,501 $0.050 March 30, 2021 May 7, 2021 August 1, 2021 $15,311 $0.050 June 8, 2021 August 6, 2021 October 31, 2021 $15,069 $0.050 September 8, 2021 November 5, 2021 January 30, 2022 $14,891 $0.050 December 7, 2021 February 4, 2022 Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021 titled 'Repurchase and cancellation of common shares'. Recreate the journal entry to reflect the repurchase and cancellation. Were the shares repurchased for a higher or lower amount than they were originally issued for? Explain. [Hint: Be careful, one of the columns in the statement reflects the number of shares (not a $value).] Dollarama Inc. Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Balance - February 2, 2020 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge gains to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares Reclassification for the exercise of share options Balance - January 31, 2021 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge losses to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares i Reclassification for the exercise of share options Balance - January 30, 2022 Note 12 310,231,037 2 222 22 12 12 12 12 12 NNNNNN 12 12 310,266,429 12 12 Number of common shares 12 12 . (1,621,708) (2,437) 1,657,100 32,399 6,821 (18,176,760) 723,900 capital $ Share Contributed surplus $ 12 292,813,569 448,704 485,487 (29,425) 19,164 4,220 479,446 29,108 6,240 (6,821) 28,527 8,617 (4.220) 32,924 Deficit $ (574,110) 564,348 564,348 (55,616) (84,005) (149,983) 663,169 663,169 (60,772) (1.030,493) (578,079) Accumulated other comprehensive Income (loss) 4,102 (32,620) (32,620) (659) (29,177) (1.070) (1,070) 29,922 (325) Total $ (92.196) 564,348 (32,620) 531,728 (659) (55,616) (87,042) 6,240 32,399 334,854 663,169 (1.070) 662,099 29,922 (60,772) (1,059,918) 8,617 19,164 (66,034) Dollarama Inc. Consolidated Statements of Financial Position as at (Expressed in thousands of Canadian dollars) Assets Current assets Cash Accounts receivable Prepaid expenses Inventories Derivative financial instruments Non-current assets Right-of-use assets Property, plant and equipment Intangible assets Derivative financial instruments Goodwill Equity-accounted investment Total assets Note 14 677889 January 30, 2022 71,058 26,260 13,135 590,927 15,987 717,367 1,480,255 761,876 164,066 290 727,782 211,926 4,063,562 January 31, 2021 439,144 20,546 9,549 630,655 468 1,100,362 1,344,639 709,469 161,791 314 727,782 179,389 4,223,746 Liabilities and shareholders' equity (deficit) Current liabilities Accounts payable and accrued liabilities Short-term borrowings Dividend payable Derivative financial instruments Income taxes payable Current portion of long-term debt Current portion of lease liabilities Non-current liabilities Non-current portion of long-term debt Non-current portion of lease liabilities Deferred income taxes Total liabilities Shareholders' equity (deficit) Share capital Contributed surplus Deficit Accumulated other comprehensive loss Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 10 11 12 14 11 6 163 11 2222 283,125 89,386 14,891 3,435 62,516 257,674 200,864 911,891 1,539,240 1,526,564 151,901 4,129,596 479,446 32,924 (578,079) (325) (66,034) 4,063,562 253,072 14,583 25,821 12,975 832,821 181,893 1,321,165 1,044,079 1,401,769 121,879 3,888,892 485,487 28,527 (149,983) (29,177) 334,854 4,223,746 Dollarama Inc. Consolidated Statements of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Share of net earnings of equity-accounted investment Operating income Financing costs Earnings before income taxes Income taxes Net earnings Note 17 19 47 13 January 30, 2022 4,330,761 2,428,536 1,902,225 652,832 297,960 (33,184) 984,617 91,216 893,401 230,232 663,169 January 31, 2021 $ 4,026,259 2,261,248 1,765,011 654,032 269,633 (19,654) 861,000 95,646 765,354 201,006 564,348 12 Shareholders' equity (deficit) b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital for fiscal years ended on the dates indicated below were as follows: Balance, beginning of year Cancellation under NCIB Exercise of share options Balance, end of year January 30, 2022 Number of common shares 310,266,429 (18,176,760) 723,900 292,813,569 Amount ($) 485,487 (29,425) 23,384 479,446 January 31, 2021 Number of common shares 310,231,037 (1,621,708) 1,657,100 310,266,429 Amount (S) 448,704 (2,437) 39,220 485,487 e) Dividends The table below outlines the amounts of dividends recognized as distributions to holders of common shares in the consolidated statement of changes in shareholders' equity (deficit) during each quarter of the fiscal year ended January 30, 2022 and January 31, 2021. For the quarters ending Dividend declared Dividend per common share Declaration date Payment date May 2, 2021 $15,501 $0.050 March 30, 2021 May 7, 2021 August 1, 2021 $15,311 $0.050 June 8, 2021 August 6, 2021 October 31, 2021 $15,069 $0.050 September 8, 2021 November 5, 2021 January 30, 2022 $14,891 $0.050 December 7, 2021 February 4, 2022 Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021 titled 'Repurchase and cancellation of common shares'. Recreate the journal entry to reflect the repurchase and cancellation. Were the shares repurchased for a higher or lower amount than they were originally issued for? Explain. [Hint: Be careful, one of the columns in the statement reflects the number of shares (not a $value).] Dollarama Inc. Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Balance - February 2, 2020 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge gains to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares Reclassification for the exercise of share options Balance - January 31, 2021 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge losses to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares i Reclassification for the exercise of share options Balance - January 30, 2022 Note 12 310,231,037 2 222 22 12 12 12 12 12 NNNNNN 12 12 310,266,429 12 12 Number of common shares 12 12 . (1,621,708) (2,437) 1,657,100 32,399 6,821 (18,176,760) 723,900 capital $ Share Contributed surplus $ 12 292,813,569 448,704 485,487 (29,425) 19,164 4,220 479,446 29,108 6,240 (6,821) 28,527 8,617 (4.220) 32,924 Deficit $ (574,110) 564,348 564,348 (55,616) (84,005) (149,983) 663,169 663,169 (60,772) (1.030,493) (578,079) Accumulated other comprehensive Income (loss) 4,102 (32,620) (32,620) (659) (29,177) (1.070) (1,070) 29,922 (325) Total $ (92.196) 564,348 (32,620) 531,728 (659) (55,616) (87,042) 6,240 32,399 334,854 663,169 (1.070) 662,099 29,922 (60,772) (1,059,918) 8,617 19,164 (66,034) Dollarama Inc. Consolidated Statements of Financial Position as at (Expressed in thousands of Canadian dollars) Assets Current assets Cash Accounts receivable Prepaid expenses Inventories Derivative financial instruments Non-current assets Right-of-use assets Property, plant and equipment Intangible assets Derivative financial instruments Goodwill Equity-accounted investment Total assets Note 14 677889 January 30, 2022 71,058 26,260 13,135 590,927 15,987 717,367 1,480,255 761,876 164,066 290 727,782 211,926 4,063,562 January 31, 2021 439,144 20,546 9,549 630,655 468 1,100,362 1,344,639 709,469 161,791 314 727,782 179,389 4,223,746 Liabilities and shareholders' equity (deficit) Current liabilities Accounts payable and accrued liabilities Short-term borrowings Dividend payable Derivative financial instruments Income taxes payable Current portion of long-term debt Current portion of lease liabilities Non-current liabilities Non-current portion of long-term debt Non-current portion of lease liabilities Deferred income taxes Total liabilities Shareholders' equity (deficit) Share capital Contributed surplus Deficit Accumulated other comprehensive loss Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 10 11 12 14 11 6 163 11 2222 283,125 89,386 14,891 3,435 62,516 257,674 200,864 911,891 1,539,240 1,526,564 151,901 4,129,596 479,446 32,924 (578,079) (325) (66,034) 4,063,562 253,072 14,583 25,821 12,975 832,821 181,893 1,321,165 1,044,079 1,401,769 121,879 3,888,892 485,487 28,527 (149,983) (29,177) 334,854 4,223,746 Dollarama Inc. Consolidated Statements of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Share of net earnings of equity-accounted investment Operating income Financing costs Earnings before income taxes Income taxes Net earnings Note 17 19 47 13 January 30, 2022 4,330,761 2,428,536 1,902,225 652,832 297,960 (33,184) 984,617 91,216 893,401 230,232 663,169 January 31, 2021 $ 4,026,259 2,261,248 1,765,011 654,032 269,633 (19,654) 861,000 95,646 765,354 201,006 564,348 12 Shareholders' equity (deficit) b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital for fiscal years ended on the dates indicated below were as follows: Balance, beginning of year Cancellation under NCIB Exercise of share options Balance, end of year January 30, 2022 Number of common shares 310,266,429 (18,176,760) 723,900 292,813,569 Amount ($) 485,487 (29,425) 23,384 479,446 January 31, 2021 Number of common shares 310,231,037 (1,621,708) 1,657,100 310,266,429 Amount (S) 448,704 (2,437) 39,220 485,487 e) Dividends The table below outlines the amounts of dividends recognized as distributions to holders of common shares in the consolidated statement of changes in shareholders' equity (deficit) during each quarter of the fiscal year ended January 30, 2022 and January 31, 2021. For the quarters ending Dividend declared Dividend per common share Declaration date Payment date May 2, 2021 $15,501 $0.050 March 30, 2021 May 7, 2021 August 1, 2021 $15,311 $0.050 June 8, 2021 August 6, 2021 October 31, 2021 $15,069 $0.050 September 8, 2021 November 5, 2021 January 30, 2022 $14,891 $0.050 December 7, 2021 February 4, 2022 Review the statement of changes in shareholders' equity (deficit) look at the line in fiscal 2021 titled 'Repurchase and cancellation of common shares'. Recreate the journal entry to reflect the repurchase and cancellation. Were the shares repurchased for a higher or lower amount than they were originally issued for? Explain. [Hint: Be careful, one of the columns in the statement reflects the number of shares (not a $value).] Dollarama Inc. Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Balance - February 2, 2020 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge gains to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares Reclassification for the exercise of share options Balance - January 31, 2021 Net earnings Other comprehensive loss Total comprehensive income (loss) Transfer of realized cash flow hedge losses to inventory Dividends declared Repurchase and cancellation of common shares Share-based compensation Issuance of common shares i Reclassification for the exercise of share options Balance - January 30, 2022 Note 12 310,231,037 2 222 22 12 12 12 12 12 NNNNNN 12 12 310,266,429 12 12 Number of common shares 12 12 . (1,621,708) (2,437) 1,657,100 32,399 6,821 (18,176,760) 723,900 capital $ Share Contributed surplus $ 12 292,813,569 448,704 485,487 (29,425) 19,164 4,220 479,446 29,108 6,240 (6,821) 28,527 8,617 (4.220) 32,924 Deficit $ (574,110) 564,348 564,348 (55,616) (84,005) (149,983) 663,169 663,169 (60,772) (1.030,493) (578,079) Accumulated other comprehensive Income (loss) 4,102 (32,620) (32,620) (659) (29,177) (1.070) (1,070) 29,922 (325) Total $ (92.196) 564,348 (32,620) 531,728 (659) (55,616) (87,042) 6,240 32,399 334,854 663,169 (1.070) 662,099 29,922 (60,772) (1,059,918) 8,617 19,164 (66,034) Dollarama Inc. Consolidated Statements of Financial Position as at (Expressed in thousands of Canadian dollars) Assets Current assets Cash Accounts receivable Prepaid expenses Inventories Derivative financial instruments Non-current assets Right-of-use assets Property, plant and equipment Intangible assets Derivative financial instruments Goodwill Equity-accounted investment Total assets Note 14 677889 January 30, 2022 71,058 26,260 13,135 590,927 15,987 717,367 1,480,255 761,876 164,066 290 727,782 211,926 4,063,562 January 31, 2021 439,144 20,546 9,549 630,655 468 1,100,362 1,344,639 709,469 161,791 314 727,782 179,389 4,223,746 Liabilities and shareholders' equity (deficit) Current liabilities Accounts payable and accrued liabilities Short-term borrowings Dividend payable Derivative financial instruments Income taxes payable Current portion of long-term debt Current portion of lease liabilities Non-current liabilities Non-current portion of long-term debt Non-current portion of lease liabilities Deferred income taxes Total liabilities Shareholders' equity (deficit) Share capital Contributed surplus Deficit Accumulated other comprehensive loss Total shareholders' equity (deficit) Total liabilities and shareholders' equity (deficit) 10 11 12 14 11 6 163 11 2222 283,125 89,386 14,891 3,435 62,516 257,674 200,864 911,891 1,539,240 1,526,564 151,901 4,129,596 479,446 32,924 (578,079) (325) (66,034) 4,063,562 253,072 14,583 25,821 12,975 832,821 181,893 1,321,165 1,044,079 1,401,769 121,879 3,888,892 485,487 28,527 (149,983) (29,177) 334,854 4,223,746 Dollarama Inc. Consolidated Statements of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Share of net earnings of equity-accounted investment Operating income Financing costs Earnings before income taxes Income taxes Net earnings Note 17 19 47 13 January 30, 2022 4,330,761 2,428,536 1,902,225 652,832 297,960 (33,184) 984,617 91,216 893,401 230,232 663,169 January 31, 2021 $ 4,026,259 2,261,248 1,765,011 654,032 269,633 (19,654) 861,000 95,646 765,354 201,006 564,348 12 Shareholders' equity (deficit) b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital for fiscal years ended on the dates indicated below were as follows: Balance, beginning of year Cancellation under NCIB Exercise of share options Balance, end of year January 30, 2022 Number of common shares 310,266,429 (18,176,760) 723,900 292,813,569 Amount ($) 485,487 (29,425) 23,384 479,446 January 31, 2021 Number of common shares 310,231,037 (1,621,708) 1,657,100 310,266,429 Amount (S) 448,704 (2,437) 39,220 485,487 e) Dividends The table below outlines the amounts of dividends recognized as distributions to holders of common shares in the consolidated statement of changes in shareholders' equity (deficit) during each quarter of the fiscal year ended January 30, 2022 and January 31, 2021. For the quarters ending Dividend declared Dividend per common share Declaration date Payment date May 2, 2021 $15,501 $0.050 March 30, 2021 May 7, 2021 August 1, 2021 $15,311 $0.050 June 8, 2021 August 6, 2021 October 31, 2021 $15,069 $0.050 September 8, 2021 November 5, 2021 January 30, 2022 $14,891 $0.050 December 7, 2021 February 4, 2022
Expert Answer:
Answer rating: 100% (QA)
Based on the provided information from Dollarama Incs Consolidated Statements of Changes in Shareholders Equity Deficit lets analyze the line item related to the repurchase and cancellation of common ... View the full answer
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
Posted Date:
Students also viewed these accounting questions
-
A Case Study of Financial Reporting Issues Qing L. Burke Tim V. Eaton Miami University Alibaba Group Initial Public Offering: A Case Study of Financial Reporting Issues ABSTRACT: In September 2014,...
-
Reconstructing transactions affecting shareholders' equity. Exhibit 14.11 reproduces a portion of the statement of changes in shareholders equity for Microsoft Corporation for 2007. When Microsoft...
-
Question 3 (a) Given the following information, calculate the: Month of March 2020 (b) (i) (ii) (iii) (iv) (v) (i) Food sales Steward sales Gratis to bar (ii) Store purchase Direct purchase Food to...
-
1. Insurance Act, RSBC 1996 c226 Read Parts 1 and 2 of this statute and describe any changes to the standard commonlaw rules for contracts that you notice. 2. KP Pacific Holdings Ltd. and Churchland...
-
Plot the streamlines of the flow due to a line vortex of strength +K at (0, +a) plus a line vortex of strength K at (0, a). What is the pattern viewed from afar?
-
Assume that your team is going to form a company that will manufacture chocolate chip cookies. The team is responsible for preparing a list of all product components and costs necessary to...
-
What is escalating commitment, and why is it important to recognize it in decision making?
-
You would like to buy an industrial property in Pointe-Claire that has two tenants occupying all of the leasable area. The current owner provides you with the following information. One tenant has...
-
Try This - Match the function to the correct list of transformations. One is done for you. Function B. f(x)=-x-1 3 f(x) = (3(x-2))3 + 1 f(x) = -3(x + 1)3 + 2 3 f(x) = (x) - 1 List of Transformations...
-
In the northeastern fault block of the Bree Creek Quadrangle there is a hill that is capped by Helms Deep Sandstone overlying Rohan Tuff. In Problem 3.1 you determined the attitudes of these two...
-
A shell-and-tube heat exchanger is designed to cool 10000 kg/hr of oil from 150C to 40C using cooling water available at 20C. The specific heat capacity of oil is 2.2 kJ/kgK and that of water is 4.18...
-
Discuss the concept of opportunity cost and provide a real-world example of how a business might use opportunity cost in decision-making.
-
Discuss the function of cookies, the process by which they are set, and advantages they can provide for site visitors. On the opposite side, why would a user deny the placement of cookies? What risks...
-
You are employed at Hemisphere Manufacturing Company which is in the process of globally expanding its business. Hemisphere Manufacturing produces small compact oxygen tanks for at-home use. You have...
-
A newborn infant died after receiving penicillin G benzathine IV. An order for penicillin G benzathine 150,000 units was written for the infant after it was discovered that the mother had contracted...
-
Fantchip Pty Ltd entered a one-year contract to manufacture and supply Motorplus Pty Ltd with 1000 computer microchips that were to be delivered on the first day of every month. Motorplus to Fastchip...
-
This is the answer key for this question. Answer these two additional questions about this problem: Record lease expense for the year 2022 on December 31, 2022. Record lease expense for the ye...
-
Define cultural intelligence. Cite the books or journal articles you found in Capella's library. Explain why cultural intelligence is important for HR practitioners and other organizational managers.
-
As a potential lender, discuss how you might view the nature of a deferred income tax liability on a companys statement of financial position, and whether you would treat it in the same way as you...
-
The following information for the current year was obtained from the accounting records of Safari Supplies Corporation: Retained earnings, beginning .......... $ 96,000 Retained earnings, ending...
-
Quebec Super cheese Company (QSC) produces many varieties of cheese that are sold in every province in Canada, mainly through large grocery stores and specialty cheese shops. The cheese is produced...
-
In the late 19th century, more than half of all Americans lived on farms. New farming techniques, based on science, were being developed through university research, but older generations of farmers...
-
Review the minutes of recent meetings by Bank of Japan officials. Summarize at least one recent meeting that was associated with possible or actual intervention to affect the yens value.
-
Why might the foreign exchange intervention strategies of the Bank of Japan be relevant to the U.S. government and to U.S.-based MNCs?
Study smarter with the SolutionInn App