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AP11-7 Analyzing the Repurchase of Shares and Retained Earnings (P11-11 L01-3, 11-4 A Dollarma Inc. The following information is extracted from the statement of financial

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AP11-7 Analyzing the Repurchase of Shares and Retained Earnings (P11-11 L01-3, 11-4 A Dollarma Inc. The following information is extracted from the statement of financial position of Dallarama Inc. All amounts are in thousands of Canadian dollars. February 3. January 28, 2019 2018 $ 408,179 S 415,787 32,450 27,699 Shareholders' Equity Share capital Contributed surplus Deficit Accumulated other comprehensive income Total shareholders' deficit (681.914) (663.421) 7.189 32.423 $(234,096) 5(252,358) Net earnings for the year ended February 3, 2019 is $548,874. Dollarama Inc, reported the following information in the notes to its financial statements for the year ended February 3, 2019 Taking into account the Share Split, the total number of common shares repurchased for cancellation under the 2017 2018 NCIB and the 2018-2019 NCIB during the fiscal year ended February 3, 2019 amounted to 13,790,350 common shares January 28, 2018-18,313,620 common shares purchased under the NCIB then in effect) for a total cash consideration of $533.091 January 28, 2018-5812,659). For the fiscal year ended February 3, 2019, the Corporation's share capital was reduced by 517,491 (January 28, 2018-$22.305) and the remaining $515,600 (January 28, 2018- $790.354) was accounted for as an increase in deficit. February 3, January 28, 2019 2018 $ 408,1795 415,787 Shareholders' Equity Share capital Contributed surplus Delicit Accumulated other comprehensive income Total shareholders' deficit 32.450 27.699 (681.914) (663,421) 7189 32423) $(234,096) $(352,358) Net earnings for the your ended February 3, 2019 is $548,874 Dollarama Inc. reported the following information in the notes to its financial statements for the year ended February 3, 2019 Taking into account the Share Split, the total number of common shared repurchased for cancellation under the 2017- 2018 NCIB and the 2018-2019 NCIB during the fiscal year ended February 3, 2019 amounted to 13.790,350 common shares January 28, 2018-18,313,620 common shares purchased under the NCIS then in effect for a total cash consideration of $533,091 January 28, 2018-5812.659). For the fiscal year ended February 3, 2019, the Corporation's share capital was reduced by $17,491 (January 28, 2018 - $22.305) and the remaining $515,600 (January 28, 2018 $790,354) was accounted for as an increase in deficit Required 1. Prepare the journal entry to record the share repurchase transactions during fiscal years 2018 and 2019, 2. Why do you think Dollarama decided to repurchase the shares? Explain 3. Did Dollarama declare any dividends during fiscal year 2019? If so, compute the amount of dividends declared by the company

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