Dec 31, 2015

Shareholders' Equity

Share capital: $582,796

Retained earnings $1,292,581

Other components $84,626

Total shareholder's equity $1,959,993

Dec 31, 2014

Shareholders' Equity

Share capital: $603,287

Retained earnings $1,102,300

Other components $71,915

Total shareholder's equity $1,777,502

Net earnings for the year ended Dec 31, 2015 is $367,530

During the year ended Dec 31, 2015, the Corporation purchased and cancelled a total of 4,719,690 shares (Dec 31, 2014- 1,435,150) for total consideration of $123,813 (Dec 31, 2014- $39,431). The average book value of the shares repurchased was $4.73 per share (Dec 31, 2014-$4.70) and was charged to share capital. The excess of the market price over the average book value, including transaction costs, was $101,489 (Dec 31, 2014- $32,680) and was charged to retained earnings.

1. Prepared the journal entry to record the share repurchase transaction.
2. Why do you think WestJet decided to repurchase the shares? Explain
3. Did WestJet declare any dividends during fiscal year 2015? If so, compute the amount of dividends declare by the company.

For requirement 1 I put the answer below but I am not sure

DR Common Share 123,813

DR Retained Earnings 101,489

Cash 225,302

Requirement 2

I believe WestJet is intend to reduce outstanding common share to increase earnings per share.

I am not sure about my answer and I do not know how to do requirement 3. Can you please explain?